Herschel Jawitz, the chief executive of Jawitz Properties, said he believed South Africa might have seen the shortest interest rate cutting cycle in South Africa’s history with the announcement that rates are to remain the same.
“Even with the weakening of the rand and the fuel price increases over the last few months, the latest inflation data was surprisingly good. However, too much uncertainty remains in the current environment.”
He said the key factor in the current residential market was consumer confidence and not interest rates.
He said the elective conference in December was going to be the next big milestone for the country and consumer confidence.
“The irony is that with property price growth at its lowest rate in years now has never been a better time to buy.”
Pam Golding Properties said that although at this stage it appeared that an interest rate reduction was most likely not on the cards for the foreseeable future, “we remain of the view that a further, meaningful cut would go a long way towards alleviating economic pressure on consumers, bolstering investor and business confidence, and act as a stimulus for the residential property market".
“With the festive season almost upon us, we are confident that South Africa will enjoy a buoyant tourist season, especially among domestic visitors. These are often times when buyers consider their property options and choices for the New Year, whether these be for permanent relocation for career purposes, an improved quality lifestyle, future retirement, or simply gaining that first foothold on the property ladder."