Are we too dependent on interest rates to improve the market?
The property market may ‘hope’ for interest rate cuts to boost short-term demand, and periodically, this happens, but in South Africa, new residential development remains mediocre.
The property market may ‘hope’ for interest rate cuts to boost short-term demand, and periodically, this happens, but in South Africa, new residential development remains mediocre.
The first Rode Report for 2024 shows that nominal house price growth remains slow amid a weak economy and elevated interest rates. Expectations of interest-rate cuts have been dialled back, while uncertainty over the outcome of the national elections holds buyers back.
Despite the rising interest rates and rolling Eskom blackouts in a post-Covid 19 environment, the real estate industry has seen a busy 2022. What is next?
Despite the challenges the property sector has experienced over the past number of years, investing in property remains a compelling proposition for many investors – with good reason.
Following a season of unprecedented sales volumes, activity within the South African housing market has begun to subside, most likely because of the interest rate hiking cycle that started in November last year.