Rate cut to boost property

Pam Golding Property group on Thursday welcomed the rate cut by the South African Reserve Bank, saying it will provide the property market with a positive confidence boost.

The SARB Monetary Policy Committee cut the repo rate by 50 basis points to 5.5 percent following its two-day meeting.

This is the lowest reading in almost 30 years and results in a real interest rate of around one percent.

"While there has been an uptick in housing transactions generally, a recovery in the housing market remains muted, with access to finance a hurdle which continues to preclude many homeowners from purchasing their own homes. The gap between sellers and buyers pricing expectations also remains challenging in many instances," said Pam Golding Property CEO Andrew Golding.

"On a positive note it is apparent that the market is experiencing increased interest with a sound appetite for the acquisition of residential property. This additional reduction in the interest rate is expected to instil further confidence in the market at an opportune time when some are considering relocating for various reasons, including employment transfers in the new year," said Golding.

Article by: www.iafrica.com