Chairperson’s Welcome

Dear Members, Stakeholders, Practitioners, and Industry Affiliates,

South Africa is holding its breath in anticipation of what many would argue is our most important national election in 30 years. What will happen in the run-up to May 29th, and more significantly, who will govern South Africa once the votes are counted?

This election is given so much weight as so much carries on the outcome.

Will we be able to grow the economy, stop loadshedding, upgrade our infrastructure, and provide necessary services like clean water? These are elements that have impacted our daily lives and the industry we operate in:

Semigration

Semigration due to a lack of service delivery has benefited provinces such as the Western Cape and a few small towns across the country, but areas like Gauteng and KZN are experiencing property market slumps.

A high (though stable) repo rate

Maintaining the repo rate at 8.25% (a 15-year high) is providing some relief to a constrained property market; the latest data from ooba Home Loans shows that the volume of home loan applications processed is down -9% year-on-year but up +8% from the previous quarter and that the national average purchase price is up +3.1% year-on-year in both the repeat and first-time homebuyer categories.

Although most economists were positive about a repo rate cut in the latter half of the year, the latest news shows a grim picture. The MPR recently stated, “Amid setbacks in recent domestic inflation outcomes, along with heightened uncertainty about global disinflation owing to stickiness in services inflation, markets now expect South Africa’s policy rate to remain unchanged this year,” as reported by the Daily Maverick.

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