How Trump’s presidency could impact the local property market

As the world reflects on the political and economic implications of Donald Trump’s presidency, questions arise regarding the ripple effects on markets far beyond the United States. In South Africa, the property market is one of the sectors that could see both direct and indirect influence from the policies and global economic shifts triggered by the new U.S. president.

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, global politics always has an impact on local markets. “While the South African property market is predominantly influenced by domestic factors such as interest rates, inflation, and local investor confidence, the broader international landscape—particularly U.S. policies—can’t be ignored,” he says.

One of the key factors to consider is the strength of the rand against the U.S. dollar. During Trump’s presidency, economic policies aimed at “America First” often led to market volatility and fluctuations in the strength of emerging market currencies, including the rand. A weakened rand raises import costs and could drive inflation, leading to increased pressure on the Reserve Bank to adjust interest rates. Higher interest rates generally reduce affordability for homebuyers and dampen the overall demand for property.

However, there are potential upsides. Goslett notes that uncertainty on the global stage often drives high-net-worth individuals to seek property investments in stable markets. “South Africa’s real estate sector offers attractive opportunities for foreign investors seeking value for money. This might mitigate some of the negative consequences of broader global economic challenges,” he explains.

Ultimately, the local property market is shaped by a complex web of factors, and while Trump’s policies may not have an immediate or dramatic impact, they might play an indirect role in how the local property market performs in the medium to long term.

“Regardless of external influences, South African property remains an excellent long-term investment. Buyers and sellers alike should focus on their personal needs and financial situations, working with trusted real estate professionals to navigate any potential changes in local real estate market conditions,” concludes Goslett.

Writer: Kayla Ferguson