How the real estate market performed under Ramaphosa
How well has the South African economy, and in particular the real estate sector, performed since Cyril Ramaphosa took over the reigns as president? And what is the best estimate of what we can expect in the months to come?
How the real estate market performed under Ramaphosa
As we approach the six-month mark of President Cyril Ramaphosa’s time in office, the list of extraordinary things he has done is nothing short of incredible. On the back of his promise to promote economic growth and restore investor the country’s investment potential, the rand outperformed emerging-market currency peers, inflation stabilised, the interest rate plummeted, and business confidence shot upward.
Even more good news is that the Ramaphosa presidency affected the South African real estate positively. Greater activity in the sector was reported in the first quarter of 2018, after the market flatlined for three quarters in a row. Buyers received a helping hand from banks who were willing to increase average approved bond size to 6,05%, the highest in 12 months. Properties 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.
The prospect of continued economic growth has presented increased opportunities for investment in the South African real estate market. While there is some uncertainty regarding how the issue of Land Expropriation Without Compensation and the 2018 Budget will affect property, experts are keeping their hopes up, anticipating that house prices will remain stable in 2018, with a 4% increase in house price inflation in 2018.
The long-term future of the market is far harder to call, as much will be determined by the political and government policy environment in the upcoming general elections.
