“With consumer and business confidence already at low levels, South Africa’s downgrade to junk status by S&P Global last night will put more pressure on the economy as a whole sending it further into negative territory, with a natural ripple effect on the residential property market. Already, many South Africans are over indebted, and this latest development is likely to lead to further pressure on households in the short to medium term. The Rand has depreciated significantly, and I wouldn’t be surprised if it reaches R14 to the US$ by the end of today. Downward pressure on our currency will lead to inflationary pressure which will impact on potential interest rate increases. A grim day for the property market and, indeed, the country”.
Francois Venter, Director, Jawitz Properties.