The effect of SONA on the South African property sector

Posted On Wednesday, 06 February 2019 16:16 Published by
Rate this item
(0 votes)

A highlight on South Africa’s political calendar kicks off tomorrow at 17h00.

 JOHN-JACK-

The State of the Nation Address (SONA) 2019 marks the official opening of Parliament for the new year and will give President Cyril Ramaphosa an opportunity to address political policies and key challenges that lie ahead. This address will have a direct impact on various business segments, and of course investor confidence.

The CEO of Galetti Corporate Real Estate shares his thoughts on why anyone in the property game should be watching the SONA address closely.

John Jack, Galetti Corporate Real Estate CEO a successful property market relies heavily on a strengthened economy for investment. Investors need to believe that their money will be secure and protected, and this security is encouraged by positive policies and sustainable taxes.

President Ramaphosa’s address will give an indication of the direction that the economy will progress and investors will be watching it closely..

Everyone will be watching the address tomorrow hoping that the message gives clarity to the business sector as a whole. Clear policy allows occupiers and investors to take decisions related to their real estate portfolios. From an occupier perspective, whether to expand to new premises or consolidate their footprint into a smaller building will be front of mind. 

This is driven by changes in their employee count and/or inventories held. For investors, the decisions would be whether to sell or hold on to their portfolios in anticipation of reduced vacancies and capital growth. International investors will be watching it closely and so should anyone in the property game. South Africa needs foreign investment, but international investors need security and we need to give them confidence. There is a lot resting on tomorrow’s SONA address.

A key topic of interest will be the matter of land expropriation without compensation, which hopefully will be addressed in such a way so as to reassure foreign investors.

Another main focal point will be corruption President Ramaphosa has already been under fire from the governments of Germany, the United Kingdom, the USA, the Netherlands and Switzerland. The memorandum written to the presidency – signed by all five countries – spoke of a concern about the challenges of foreign investment and so this part of the SONA address is an important one.

SONA will be televised on various broadcast networks such as eNCA and SABC from around 17h00 tomorrow. Parliament’s Youtube Channel will also be airing the address and various media outlets will be sharing highlights of the events as they unfold.

Don’t forget to tune in.

Last modified on Wednesday, 06 February 2019 16:35

Most Popular

Anuva Investments launch Section 12J hospitality fund with property partners Flyt Property Investment

Oct 18, 2019
Zane De Decker HR
Investment into Section 12J venture capital vehicles has seen a huge uptake over the last…

Fairvest to become fourth property company to list on A2X

Oct 30, 2019
DARREN WILDER
Fairvest Property Holdings, a real estate investment trust with a market cap of R2…

Significant shifts in the Winelands commercial sector

Oct 18, 2019
Caption Somerset West commercial
A decade of corporate semigration and decentralisation fuelled the Winelands commercial…

Property market ready for take-off as bond grants rise

Oct 18, 2019
BetterBonds Mortgage Monitor
Housing demand has continued to gain momentum since the start of the year and in the…

Equites Property Fund Interim Results

Oct 18, 2019
Andrea Taverna Turisan CEO Equites Property Fund
Equites Property Fund Limited (Equites) today announced distributable earnings for the…

Please publish modules in offcanvas position.