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Monday Jul 16, 2018

External factors turn optimism to caution

The downhill slide to the end of 2018 could be more an uphill struggle for the country’s property market, with external factors leaving it facing a bleak outlook.

South Africa’s slow economy and rising living costs chiselled away at the optimism felt at the start of the year, leaving the “Ramaphoria” effect now pretty much non-existent.

Added to this is uncertainty surrounding land expropriation without compensation and its expedience ahead of the general election next year, says Stuart Manning, chief executive of the Seeff Property Group. Household budgets are under severe pressure due to rising costs, the most recent being yet another petrol price increase.

“The economy is characterised by low investment, constrained confidence and uncertainty about property ownership. The rich and those with money to spend on houses are holding back, which is concerning for the market.”

After the outcome of last year’s ANC elective conference, Arnold Maritz, Southern Suburbs co-principal for Lew Geffen Sotheby’s International Realty, says many in the real estate market expected a financial recovery following the rand strengthening and the positive GDP growth in the first financial quarter.

Read more on Property360...

Bonny Fourie

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