1st Quarter 2021 FNB Property Broker Survey of Rental Market Conditions – Brokers perceive recovery in Industrial and Retail market activity, but little sign of rising activity in the Office Market.

South African home buyers can look forward to a few more months of record-low interest rates as the Monetary Policy Committee has once again opted to hold the repo rate steady at 3.5%.

The South African Reserve Bank (SARB) is set to hold the repo rate at the 23-25 March meeting, according to a unanimous vote by 25 economists on Finder’s repo rate forecast report.  

Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated by the reaction from markets.

Despite the uncertainties surrounding the pandemic, the market for prime global residential property is expected to remain active as the long-term appeal of this sector holds strong - as sentiment improves amidst the rollout of the Covid-19 vaccine across the globe, and as the Biden administration plans a massive stimulus package to revive growth in the US, according to Savills World Cities Prime Residential Index.

While a further reduction to the interest rate would have been a bonus for aspirant first-time home buyers and existing homeowners with mortgages, the Monetary Policy Committee’s decision to leave the repo rate unchanged at 3.5% was anticipated by the majority of market commentators, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Sectional Title schemes that are not yet compliant with the reserve fund provisions of the Community Housing Schemes Ombud Services (CSOS) Act should rectify that position as soon as possible.

While the Home Buying Market is buoyant, still being driven by sharply lower interest rates this year.

Since June this year, residential property sales have escalated in the Eastern Cape hubs of Port Elizabeth and East London, and encouragingly, with brisk activity across all price ranges, reports Pam Golding Properties.

Further repo rate cut would have provided relief for economy and boosted housing market, says Dr Andrew Golding.