PROPERTY FINANCE
“ Seeff warns that further rate shocks will impact property market ”
While the decision to hike the repo rate by 75 basis points to 5.5 % ( prime rate to 9 %) is somewhat of a shock ( since we expected 50bps ), a steeper hike was expected by the property market .
I believe that the Reserve Bank has perhaps taken a one dimensional approach to a multidimensional problem . We are in unprecedented times , and call on the Bank to minimise further rate hikes .
We understand the need for a rate increase , but we believe that a 50bps hike could have been adequate . It may appear easy to say let ’ s fight inflation with an interest rate hike , but this may not have the desired effect as we are not talking about demanddriven inflation , but mostly imported inflation caused by external factors ( oil prices , Russia-Ukraine War and so on ).
Samuel Seeff Chairman Pam Golding Properties
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182 AUGUST 2022 SA Real Estate Investor Magazine