THE PROPERTY MARKET REACTS FAVOURABLY
Category General News
The rand likes it. So does the stock market, in particular SA Inc stocks, and the yield on South African bonds has come down. Financial and other related global markets have all reacted positively to the prospect of South Africa forming a government of national unity. "For the property market," says Wakefields' CEO Myles Wakefield, "we've always seen a strong correlation between all of the above. If the current government negotiations show commitment to the future of South Africa - and South Africans - over politics, we could see increased property volumes and in time, a growing confidence among buyers and sellers translated into an ever-strengthening market. It's positive news."
As entirely expected, the immediate future will be a barrage of noise around the complexities of curating a national unified government. Still, there are clear signs from the top that the focus has moved from party politics to the needs of the nation. There's a real sense that the time is now; a crucial time to put aside individual or party interests, and respond to the nation's call for authentic job creation, infrastructure development, no corruption, and more.
"Optimistic is how we're feeling," says Wakefield. "We know that the property market reacts to decisive action not posturing, where attention is paid to inclusive growth, where democratic processes are respected, where corruption is treated seriously. But also, this current optimism will translate into confidence - property is a very emotive commodity, it's always affected by sentiment, and today, sentiment is more positive than it's been for some time. In KZN, this move in the right direction could bring in investment, capital, and ultimately - say those in the know - a reduction in interest rates. Further down the road, we are hoping this will translate to far better economic growth in our country than we've averaged over the past 15 years, leading to a reduction in the unemployment rate. All of this will be positive for property.
It's clear that South Africa has reached a crossroads, with this beckoning opportunity for a committed, collaborative government to create the country everybody envisioned. There's a very real sense that we are better than this - that we have a glorious country so full of potential, and we need to manage its resources far, far better. That, together, we can move it forward.
Optimism. That's the mood around the real possibility of a government of national unity, listening to the people. "For the property market," says Wakefield, "this would be an immensely positive step forward, and the effects would begin to be felt soon. If you took advantage of the slower market over the past year or so, great...but that window is closing. If you've been sitting on the fence waiting, now's the time - I believe the market is poised to shift."
Author: Myles Wakefield
