Caution over property demand
SOUTH Africans are still cautiously optimistic about the performance of the residential property market, with a survey conducted by BusinessLive showing a below par growth trend rate next year.
The majority of respondents - about 53 percent - anticipate a capital growth of less than five percent on their properties.
In contrast, 40percent expect capital growth to exceed five percent over the same period, while seven percent anticipated no growth at all. These sentiments echo the latest data by Standard Bank and FNB Property Market Analytics, which remain equally guarded in their outlook on the housing market going into next year.
The FNB house price index recorded a year-on-year inflation rate of 3,8percent from the previous month's revised3,9percent. Standard Bank registered 4,8percent, year-on-year growth compared with 6,5percent in the preceding month.
FNB property analyst John Loos anticipated the latest round of the Reserve Bank's monetary easing to have "a mildly positive impact on residential demand in the short term".
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