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Post-election optimism in property market amid economic uncertainty

Post-election optimism in property market amid economic uncertainty

MAIN IMAGE: Xoliswa Tini – principal of Xoliswa Tini Properties, Adrian Goslett – regional director and CEO of RE/MAX, Myles Wakefield – CEO of Wakefields Estate Agents, Dr Andrew Golding – chief executive of the Pam Golding Property group, Samuel Seeff – chairman of the Seeff Property Group, Stefan Botha – director of Rainmaker Marketing, Professor Onkgopotse JJ Tabane, and Carlos Correia, CEO of Fundamentum Property Group

Editor

With the recent conclusion of the local and national elections in South Africa, stakeholders across the property market are expressing cautious optimism amidst lingering economic uncertainties. The elections, closely watched by investors and homeowners alike, have prompted reflections on the intersection of politics and property dynamics in the country.

“We all know that when there is political instability in any country, the economy gets affected. Unfortunately, when the economy struggles, the first-hit industry is the property market,” notes Xoliswa Tini, principal of Xoliswa Tini Properties. “With the elections behind us, I think we will start seeing investors as well as homebuyers settling. Sellers will also decide what to do with their properties and which provinces will have stability for them to invest. We hope to see movement in the reduction of the interest rates to allow a break for first-time buyers to access the market”.

The sentiment is echoed by Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, who highlights the tendency of investors to adopt a ‘wait and see’ approach during election periods. “Owing to the uncertainty that builds around election time, many investors prefer to keep their finances liquid until the future of the economy becomes more stable,” Goslett observes.

Myles Wakefield, CEO of Wakefields Estate Agents, remarks on the election outcome, stating, “South Africans have clearly voted for change, marking the onset of a new political era.”

He acknowledges the disappointing voter turnout but expresses hope for market-friendly economic agendas in emerging coalitions. “We are obviously hoping for political alliances that favour a more market-friendly economic agenda, but we are headed into a new dynamic, and we will be closely watching the outcome of coalition discussions taking place in the next few weeks. Ultimately, the potential for interest rate reductions may significantly influence buyer sentiment more than the election outcome itself”, he concludes.

Dr Andrew Golding, chief executive of the Pam Golding Property group, anticipates a positive post-election market. “As long as there is stability, sentiment tends to improve,” he says, emphasising the potential impact of interest rate reductions on buyer sentiment.

Reflecting on the election results, Samuel Seeff, chairman of the Seeff Property Group, stresses the importance of economic stability: “If we can move forward with stable governance, a focus on service delivery and infrastructure development, it will be the boost that the economy and property market need to take the next upswing, which will be good for the market and sellers and contribute even more meaningfully to the economy.”

The insights provided by industry leaders were further explored in Rainmaker Marketing’s “Beyond the Vote” webinar. Stefan Botha, director of Rainmaker Marketing, led the discussion, engaging panellists to navigate the anticipated changes in the property market post-election.

Professor Onkgopotse JJ Tabane, a political commentator, provides context to the country’s critical issues and suggests the possibility of coalition governments to address policy alignments.

Carlos Correia, CEO of Fundamentum Property Group, underscores the need for broader participation to implement effective changes. “Private investors want change to happen, but that must be across all levels,” Correia asserts.

Despite the challenges posed by economic uncertainties and election jitters, stakeholders in South Africa’s property market remain cautiously optimistic. The outcome of the elections, coupled with potential interest rate reductions and collaborative efforts, sets the stage for a hopeful trajectory in the post-election landscape.

For more insights, the full “Beyond the Vote” webinar can be viewed here.

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