SA’s economy is lacking confidence
The fact that the current economic pressure is leaving South African households with less disposable income has dented consumer confidence according to Dr Andrew Golding, chief executive of the Pam Golding Property group. And what South Africa’s economy needs is an injection of confidence.
Consumer confidence has been dented as household finances have had to adjust to reduced disposable income, says Dr Andrew Golding, chief executive of the Pam Golding Property group. With the ongoing economic pressure what the country’s economy needs is a boost of confidence.
“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”, Dr Golding says.
He adds that what they are observing nationwide in relation to Pam Golding Properties’ sales, is that well-priced homes under roughly R2.5 million are selling well to a cross-section of buyers, including investors. “Nationally, however, the emphasis is on homes being pegged at realistic, market-related prices. Also in regard to our sales nationally, for the calendar year to date we have recorded a slight increase in unit sales,” Dr Golding says.
Dr Golding further adds that they expect the effect of the petrol price increases to further impact on consumer’s desire to reduce commutes and live as close to the workplace as possible, and with the increase in sophisticated digital technology and many companies offering flexible working hours, increasingly work from home.
