Tyson Properties founder and CEO, Chris Tyson, has welcomed this week’s announcement by the South African Reserve Bank’s Monetary Policy Committee that the repo rate will remain unchanged at 8.25%.
Although the repo rate remains at a 14-year-high dating back to May 2023, Tyson is optimistic that this signals a period of greater stability for South Africa’s property market which is good news for both buyers and sellers. On an even more positive note, he expects the repo rate to begin to drop during the second half of 2024.
This will balance out further turbulence that is expected during 2024, especially in the lead up to the State of the National Address and the Budget Speech in February which could herald increases in personal tax as well as property taxes.
“The economic fundamentals associated with subdued economic growth, high inflation and high unemployment remain daily realities. Even though the inflation rate has dipped, the possibility of fuel price hikes persists as do other increases which may impact on households’ disposable incomes. As a result, we only expect the interest rate to begin to drop after the middle of 2024,” he says.
The unchanged rate is a relief for resilient South Africans, Tyson believes. He says greater optimism in the market manifested towards the end of 2023 with the number of enquiries received by Tyson Properties in its key markets increasing together with the number of first-time buyers. Renewed positivity in the Johannesburg market is evident and KwaZulu-Natal is also doing well. The Cape Town market, which has been on an ongoing upward trajectory, remains buoyant.
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Author: Nicola Chaning-Pearce from Tynago Communications for Tyson Properties.
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