Flat repo rate welcomed amidst slow economy
While the currency fluctuation poses a risk of monetary policy tightening , the decision is good news for consumers and property owners, especially those paying mortgage bonds, Stuart Manning said, who is CEO of the group.
Apart from the economic pressure, the political noise and policy uncertainty around land expropriation is still a concern for the market. Due to this many buyers have become hesitant, particularly those at the top end of the market, both local and foreign buyers alike.
The petrol price increases and a weaker currency means that the economy is likely to remain sluggish for the rest of the year. According to Manning this will leave South Africa will an overall weaker property market although there are pockets of good growth in both turnover and prices.
Should you be looking to invest in property in Zululand, you’ll be happy to know that in spite of the economic challenges, the market is still doing well. It may be slower, but there is still price growth and many reasons to buy property; with many locations noticing excellent trade, especially the lower to mid-market sections.
While market commentators always highlight the negative side of the market without necessarily weighing the balance, according to Manning there is opportunity in every market. He says while downmarket conditions are usually characterised by speculators looking for bargains, it also pulls serious buyers.
