We have seen remarkable resilience in the upper end of the market ( R 2million and higher ) so far , and at least for now the situation is nothing close to resembling what we experienced in the financial crisis of 2008 . I expect the interest rate hikes to drive segmentation in the market between the entry level buyer who is often more dependent upon housing finance , and the upper end buyer with growing equity and wealth .
Fortunately the situation in South Africa is different from what is being experienced in the USA and
Europe at the moment . Although we are seeing knock-on inflationary effects from the steep rises in energy prices and the supply crisis brought about by the Russia / Ukraine conflict , our local economy is not over-stimulated and doesn ’ t have the liquidity of the USA and Europe , which I believe contributed largely to their inflationary woes . It is also clear from our inflation numbers that inflation has largely contributed to energy and food price increases due to the factors already mentioned , and we have not seen second rate inflationary rises in many of the other sectors
SA Real Estate Investor Magazine OCT 2022 71