What SA’s economy needs: a dose of confidence
With the current state of our economy under pressure, according to Dr Andrew Golding what South Africa needs is an injection of confidence that will stimulate the economy and drive investment.
Dr Andrew Golding, chief executive of the Pam Golding Property Group, says amid ongoing socio-political concerns and consumers’ disposable income under pressure, what South Africa needs now is a dose of confidence that will trigger the economy and drive investment.
“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%,” Dr Golding says.
With the younger generation ready to enter the property market and an up-and-coming segment of the market which has newfound wealth and a desire to invest in real estate, Dr Golding say they hope to see a steadily improving housing market. With household finances in a tight corner and a young population, Dr Golding says they have already seen the lower end of property market go through an uptick, especially as the average price for first-time buyers is estimated by ooba at R939 000.
In order to lower the burden of constantly-increasing rates, taxes and municipal costs of water and electricity, as a trend multigenerational living is expected to gain further popularity, while other forms of energy and water conservation and recycling have already become essential imperatives for recent and existing property owners.
