Continued repo rate bodes well for market confidence

Commenting on the decision by the Monetary Policy Committee to keep the repo rate unchanged at 5%, Dr Andrew Golding, CE of the Pam Golding Property group comments, "General market sentiment at the start of 2013 has improved, translating into an air of increased confidence in the residential property market, which is generating increasing enquiries from serious buyers.

"For the calendar year to date (January 2013), the company has experienced a noticeable increase in website enquiries, compared to the same period last year, which is a further indicator of increased activity in the market, particularly as the first few weeks of January 2012 saw an exceptionally high rate of website enquiries.

"While consumers remain faced with cost pressures, the sustained low interest rates are certainly a factor in assisting both buyers and sellers adjust to the 'new normal' trading conditions in the property marketplace. As a result, we are seeing a regularising in the marketplace, with more and more sellers being those who are doing so for reasons other than financial constraints ie normal movement or activity. Buyers with cash or high equity are still in a favourable position to take up good buying opportunities that are available in a variety of locations and offer sound investment potential over the medium to longer term.

"Encouragingly, we are seeing more first time buyers enter the marketplace, while developers continue to demonstrate growing confidence in launching new developments to cater for a pent-up demand for new-build units in good locations and at market-related prices. There also appears to be indications of increased interest from buy-to-let investors and, looking further afield, we are seeing rising interest from buyers in Africa and other international markets.

"Historically, the first quarter of the year is also a time when people may be relocating for a variety of reasons, including work or family requirements such as educational facilities, a change in lifestyle, or upsizing and downsizing. From a price perspective the main interest experienced by the company is in the price range up to around R6 million or R7 million, although sales upwards of R10 million are also being achieved. All in all, the outlook for the year ahead is positive and we are optimistic," concludes Dr Golding.

Let's do Biz