How the Ramaphosa presidency has affected the SA property market
The ascendancy of Cyril Ramaphosa to the President’s office presidency sent reverberations throughout the markets, including real estate. This article rounds up what has been happening in the property landscape since Ramaphosa took over.
How the Ramaphosa presidency has affected the SA property market
During his couple of months years in office, President Cyril Ramaphosa compiled substantial record of accomplishment in the face the country’s gloomy economy —the rand firmed against foreign currencies to a level not seen in years, consumer and business confidence shot to new heights, inflation stabilised, and the country managed to avoid further downgrades by ratings agencies.
While all of these translated into a lot of optimism over Ramaphosa becoming the new South African president, statistics reveal that his victory has also been a boost for the South African property market. BetterBond, SA’s biggest bond originator, reported greater activity in the market when Ramaphosa took office, boasting year-on-year growth of 5,3% in the average home price at the end of April, compared to 2,62% in January 2,85% in February and 2,94% in March.
The home loan approval rate responded positively to the turnaround. BetterBond recorded an increase in the average size of bonds awarded to borrowers in SA, In the first quarter of 2018, it was 6,05% higher than it was 12 months ago, making the dream of homeownership a reality for more South Africans. The market was also in favour of home sellers, who attracted a higher amount of interest and showings on a new listing. According to FNB, property for sale spent on average 14 weeks and one day on the market in the first quarter, compared previous quarter’s 17 weeks and 2 days.
Buyers and sellers now have more reason for optimism based on the market outlook for 2018. Experts believe that improved sentiment and confidence in the country hold the promise of stability in property prices, with growth nationally of around 4%.
