EDITOR ' S VIEWPOIN
The Optimistic Viewpoint : Prepare for the Upcoming Property boom
Welcome to an upbeat corner of the property world ! Let ' s face it , South Africa ' s economy has been on a sluggish journey since hosting the Soccer World Cup in 2010 . We ' ve navigated through a maze of challenges – from corruption and municipal service delivery woes to Eskom ’ s on-and-off electricity , poor water supply , deteriorating roads , and a significant lack of investment in local infrastructure . Some call it the " wasted 15 years ," but let ' s not dwell on the past . with the latest Property Brief suggesting that the property market slowdown of the last two years may have bottomed out . Improvements in loan values and volumes hint at a brighter future .
Razia Khan , chief economist for Standard Chartered Bank , advises that while the South African Reserve Bank prefers a 3 % inflation target , we might not see policy rate easing until November . But hey , good things come to those who wait , right ?
Despite these hurdles , many savvy businesses and investors have thrived , proving that resilience is in our DNA . But what about the global elephant in the room – those pesky interest rates ? Well , it looks like we might finally be in for some good news ! The Monetary Policy Committee ( MPC ) is expected to announce a longawaited drop in the interest rate soon . Bradd Bendall , interim CEO of BetterBond , mentioned that a recent dip in consumer price inflation ( from 5.3 % in March to 5.2 % in April ) could lead to lower interest rates , offering relief to debt-burdened households and boosting home loan activity .
And it ' s not just the interest rates showing promise . The rand is holding its ground , and the Consumer Price Index ( CPI ) is on a downward trend . Industry giants like Redefine Properties , Equites , BetterBond and FNB are signalling cautious optimism ,
As the ever-optimistic Christo Wiese recently shared , there ' s no reason why we shouldn ' t be hopeful about our future . Optimism beats misery any day . Current home loan values , rapid rise in bond application volumes and high demand for housing indicate that the property market is poised for a significant turnaround .
So , let ' s embrace this cautious optimism and get ready for the big property boom ! Here ' s to brighter days and prosperous investments ahead .
Founder & Editor-In-Chief
Neale Petersen
6 JUNE 2024 Real Estate Investor Magazine