SA economy lacks confidence
The only thing which South Africa lacks is confidence says Dr Andrew Golding. He says Consumer confidence has been dented as household finances have had to adjust to reduced disposable income. While this is the case, interest rates are relatively low and banks remain competitive and are still expressing an appetite for lending.
According to Dr Andrew Golding, CEO of the Pam Golding Property group, consumer confidence has been dented because of household finances that have had to adjust to a reduction in disposable income. Regardless of this, interest rates are relatively low and banks remain competitive and continue showing an interest for lending, thus any setback is likely to be temporary.
“With a younger generation eager 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, we hope to see a gradually improving housing market. With household finances under pressure and a young population, we have already seen the lower end of the housing market experience an uptick, particularly as the average price for first-time home buyers is estimated by ooba at R939 00o,” he says.
Dr Golding adds that, what the property group was seeing in all provinces in relation to Pam Golding Properties’ sales, was that houses that were well priced under approximately R2.5 million were selling to a cross-section of buyers, including investors.
“Nationally, however, the emphasis is on houses 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, albeit reflecting more activity in the middle to lower price bands, with the luxury market still ticking over steadily,” he says.
He concludes by saying that as in all market cycles there are always opportunities which pop up and they are seeing even more innovations in building homes, from water saving features and alternative forms of power such as solar to container homes and now even 3D printing of houses.
