Today’s announcement by the Monetary Policy Committee (MPC) that the repo rate would remain unchanged at 8.25% - meaning that the prime rate holds steady at 11.75% - was disappointing for consumers with significant borrowings, including those with existing mortgages as well as first-time home buyers, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

The Mauritius office of Pam Golding Properties has sold a six-bedroom, luxury beachfront villa in exclusive One&Only Private Homes Le Saint Géran resort development for USD13.6 million – the highest price ever achieved for a residential property sold on the island. The property has been acquired by a foreign buyer.

A predominantly young and rapidly urbanising population is contributing towards a growing demand for sectional title residential properties in South Africa, particularly in the major metropolitan areas and key commercial hubs, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

“At the time, the higher-than-anticipated 50bps rate hike at the previous (March 2023) MPC meeting was widely thought to be the last – or at worst the penultimate – repo rate hike in the current interest rate cycle.

With the inflation outlook deteriorating since the previous Monetary Policy Committee meeting – with the headline inflation rate again breaching the upper limit of the 4-6% target for the second consecutive month at 7.4% in June 2022, it was inevitable that a decision would be taken to further increase the repo rate, the question was simply by how much.

There was room for a pause in the upward repo rate cycle, says Dr Andrew Golding.

Motivated by the prevailing, historically low interest rates and further incentivised by banks’ lending appetite and sound purchasing opportunities, South African first-time buyers across the country continue to capitalise on the favourable buying environment and demonstrate confidence in the residential property market by acquiring their own homes, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

With South Africa’s inflation rate below the lower limit of the inflation target at 2.9%, and local inflationary expectations remaining well-anchored, it was expected that the Monetary Policy Committee would keep the repo rate unchanged, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Relief at no increase in personal tax, says Dr Andrew Golding, chief executive of the Pam Golding Property group

A luxurious, prime located, four-bedroom Clifton bungalow in perfect position on 4th Beach has been sold by Pam Golding Properties for R70 million to an upcountry buyer for use as a holiday home.