Interest rate decision a further boost to confidence in the property sector.
Category News
The South African Reserve Bank's decision to hold interest rates at their current level will be a further, very welcome cause of renewed optimism in the residential property sector, says Rowan Alexander, Director of Alexander Swart Property, the Cape based Cape Town Northern Suburbs estate agency.
"As estate agents have explained regularly over the years, a 1% rise in the interest rate results in the borrower paying a further +-R700 per month on a R1 million bond. To some, that may not seem a great deal, but for many lower middle class families (and indeed others) it can be difficult to afford, especially when it continues for a long period. The current interest is about as much as many home loan mortgagees can manage."
Alexander says that right now he and his Alexander Swart Property team are seeing a revival of confidence in the property market. This, he says, is due to a growing belief that President Ramaphosa is working to a carefully devised plan that will very slowly but surely reduce corruption and inefficiency in the administration of South Africa, revive the economy and begin to create larger scale employment that is so desperately needed.
"When Ramaphosa was elected at the ANC Conference in late 2017, we saw a similar upsurge in confidence, dubbed Ramaphoria by the press - but it lasted only a few months. Now the man-in-the-street believes he can see a clearer road ahead: he believes that the May elections will confirm Ramaphosa's dominance of the ruling party and enable him to continue with the reforms that he is carrying out. All this impacts favourably on the property market."
Alexander Swart Property agents, says Alexander, have from the first week of this year reported a renewed interest in property and a rise in enquiries.
Despite the difficult conditions of 2018, Alexander Swart Property's annual sales were 30% up on those of the previous year and this year they anticipate a 35% increase in their Brackenfell/Kraaifontein sales and a 50% increase in sales in their new Durbanville office, now in its second year of operation.
For further information contact Rowan Alexander on cell phone number 082 581 3116 or by email rowan@asproperty.co.za.
Author: Independent Authour
