Buget and property/Sotheby International Realty in SA

Reacting to the Budget today, Lew Geffen, chairman of Sotheby's International Realty in SA, said it did not contain much to encourage the real estate industry, but that in the current climate "I suppose no news is good news".

On the macro front, he noted, the massive allocation to Eskom and substantially increased spending on the police and education had been on his wish list as they would boost consumer confidence.

Looking at the detail of the Budget, he said the news that incentives for "green" development and conservation were on the way was welcome, as was the promise to review incentives for employers that provided housing for their low income earners.

"Overall, however, this Budget is not going to change the fact that the real estate market is in for a very tough time this year. I can only hope that Finance Minister Trevor Manuel is right and that inflation will come down by the end of the year and allow the Reserve Bank to start dropping interest rates."

Artcile from: www.lewgeffen.co.za