How Ramaphosa impacted the South African property market
The country that Cyril Ramaphosa has taken leadership of early in 2018, now looks vastly different from the one under Jacob Zuma’s rule. As the clock is ticking on Ramaphosa’s presidency until the next election, we take a look at the effects he’s had on the property market.
How Ramaphosa impacted the South African property market
There’s no question that South Africa’s economy has shifted into a higher gear in 2018. When Cyril Ramaphosa inherited the president’s office, the country was experiencing the worst economic and political turbulence in recent times, however, less than six months under his rule, the rand traded strongly against major global currencies, we’ve managed to sidestep a further credit downgrade by Moody’s and consumers and businesses experiencing a new sense of optimism.
The positivity was also felt in the real estate market, which led to greater activity among buyers and sellers in the first quarter of 2018. Even though the share of first-time buyers dipped to its lowest point in three quarters, the market appeared at most enticing for other prospective buyers. The banks, under the influence of the economic optimism, seemed happy to make adjustments and eased up on their home loan requirements, making it simpler for buyers to get approved at a rate they desire. The latest statistics by Betterbond show that the average approved bond size in SA is currently 6,05% higher than it was 12 months ago. There was some good news for sellers as well: according to FNB property for sale spent less time on the market in the 1st quarter of 2018, declining from the previous quarter’s 17 weeks and 2 days to 14 weeks and 1 day.
Cyril Ramaphosa’s ascension to the president’s office came at a critical time for the South African property market, which has been hit hard by low investor confidence, inflationary pressures, and high interest rates. The property market is showing signs of improvement in the wake of ‘Ramaphoria’, but, in order for the property market to really prosper, it will need greater political and economic stability.
