To achieve sustainable growth, several factors will be required: lower inflation, stronger economic expansion, enhanced infrastructure reliability, heightened investor confidence, and increased household incomes.
South Africa’s property sector still has an opportunity to consolidate and plan with greater certainty, while recognising that the broader economic environment remains challenging and that resilience will continue to be essential.
On Thursday, Lesetja Kganyago, the Governor at the South African Reserve Bank (SARB), said the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged, at 7%, and the prime at 10.50%.
The decision by the South African Reserve Bank to keep the repo rate unchanged at 7.0% strikes a careful balance between managing inflation risks and supporting an economy that continues to face weak growth, says Maphefo Sipula, the head of research and impact at Property Point.
She says while inflation accelerated to 5.0% in June, maintaining the current rate provides households, businesses and the property sector with some much-needed certainty after the May increase.
