According to Dr Andrew Golding, chief executive of the Pam Golding Property Group, inflation is still within range, but after numerous fuel increases and knock-on inflationary impacts, the Monetary Policy Committee kept the repo rate unchanged.
He added “amid ongoing socio-political concerns and consumers’ disposable income under pressure, what South Africa needs now is an injection of confidence that will stimulate the economy and drive investment.
“The tentative economic – and housing market – recovery which we have seen at the start of 2018 has suffered a temporary setback as a result of the increased tax burden and series of petrol price hikes, coupled with rising property rates and municipal tariffs such as electricity and water.
“Consumer confidence has been dented as household finances have had to adjust to reduced disposable income. Nonetheless, interest rates are relatively low and banks remain competitive and continue to show an appetite for lending, so any setback is likely to prove temporary. And according to the Pam Golding Residential Property Index, national house price inflation of 4.54% in June is up from 4.04% in January, marginally higher than the first six months of the year’s average house price inflation of 4.25%.”
This will have wide-ranging impacts, whether it’s a property for sale in Secunda, or a trip to the supermarket, it seems the confidence Dr Golding refers to cannot come soon enough. The cost of living continues to increase in South Africa and until this passes, it might be a good idea to keep the purse strings under close watch!
