The South African property market is starting the year off on the front foot. With the new presidency, the rand strengthening, and the recent interest rate cut; we can look forward to great outcomes taking place this year. The property market can look forward to an increase in buyers, especially foreign investors.
Lower lending rate
Although the VAT increase has come into effect, the property market is thrilled to see the Reserve Bank is reducing its interest rate by 6.5%. This is notably the first interest rate cut since last year July and brings much-needed relief for purchasers. Ultimately it will have a positive effect on the property market. It goes without saying that a lower interest rate will encourage buyers and investors to apply for bonds and invest in developments.
Stability for foreign investors
With the rand strengthening, South Africa’s new presidency and Moody’s decision to leave South Africa just above junk status; foreign investors are showing confidence in the South African property. Western Cape is an exemplary example of this as Lightstone recently shared a 4% increase in foreign property investment in January 2018. Lifestyle estates will continue to
Due to the interest rate cut, coupled with conservative property prices, it is believed that 2018 will be the buyer’s market. New developments, if the area is researched and the product is priced viably to specific target markets, will see faster sales rates.
Our year has started off with a huge lead and we look forward to sharing an array of different estate developments with you soon. Buyers, whether local or international, will be eager to invest in these new opportunities that present convenience, uniqueness, security and most of all luxury.