Unchanged repo rate offers little stimulus for economy

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It could have provided further stimulus on the economy, particularly against the backdrop of a subdued global economy and its concomitant impact on our local economy and market trading conditions.

From a residential property perspective, the market seems to be re-emerging in a gradual recovery and the group continue to achieve increasing sales volumes across all regions. Buyer activity in general is resuming not only due to a pent-up demand, but also as a growing middle class sector enters the property market and demonstrates an appetite for property acquisitions.

Access to credit remains a key issue for aspirant homebuyers due to stringent qualifying criteria; however, it is encouraging to note that sales in the price range up to R1.5 million make a significant contribution to total market sales. This is also a sector of the market which would benefit from a further reduction in the interest rate, not only as a confidence booster, but to help offset rising costs in terms of electricity, fuel and food prices and property rates.

Confidence in residential property as a sound medium to long-term investment continues to gather momentum, especially among a new generation of perceptive younger buyers. The group is also seeing a growing appetite among high-end buyers not only for luxury homes in South Africa but also in highly desirable destinations abroad, such as Seychelles, Mauritius and London. As South Africa's residential property market continues to show resilience, he remains optimistic about the market for the remainder of 2013.