It came as no surprise that the Reserve Bank Governor choose to leave the interest rate as is says Adrian Goslett, CEO of RE/MAX of Southern Africa.
Gill Marcus announced at the conclusion of this month’s Monetary Policy Committee meeting that the interest rate will once again remain at its current rate in hopes that it would stimulate further activity in the economy. The prime rate has been left at 9% for over a year now, this is despite predictions that it would go up during 2011.
The property market in South Africa has performed remarkably well when compared with other markets such as the US. Although no-one expected 2011 to be a major turning point in the market, this year RE/MAX of Southern Africa recorded their best winter sales from June to September, which points to the fact that consumers in this country are far more optimistic about the future of the local real estate market.
While negative foreign sentiment may flow into the local market to some degree, South Africa seems set to see a full recovery in the market far quicker than our international counterparts.
South Africa’s inclusion into BRICS will also have a positive impact on the local market as this will attract investment and fuel both the economy and real estate market alike. There is an expected sharp rise in the economies of the countries that are a part of BRICS in the near future.
