BizNews editor-at-large Jackie Cameron interviewed Pam Golding chief executive Andrew Golding during Thursday’s BizNews Power Hour, where the seasoned property expert was buoyant regarding South Africa’s residential property markets. Fifty year low interest rates have been the catalyst for the housing boom and although Golding says its tough to extrapolate forecasts for the long-term, demand should remain strong for the remainder of 2021. – Justin Rowe-Roberts
Andrew Golding on South Africa’s residential property market:
To everyone’s surprise after lockdown, the residential market has been in an extremely good space more or less for the last twelve to fourteen months. In our most recent statistics, we have seen some real house price growth relative to inflation for the first time since 2016. The indicators are there in terms of surprising results given what everyone was predicting around the economy and the state of the economy and its effect on the housing market.
On the rental market in South Africa:
I think the rental market has generally been under pressure. I think that’s a combination of the fact that, as I alluded to earlier, first time home buyers and a number of people that would ordinarily rent are taking a view to buy. Tenants have the upper hand with landlords at the moment and in the Covid environment were certainly negotiating rental reductions. Even in the post lockdown environment, renters have been keenly aware that a landlord is generally better off renegotiating with an existing tenant rather than trying to find a new one.
On whether this is the bottom of the property market – and is this the right time to buy?
I think it’s so difficult to say because we are in such unprecedented times in terms of Covid and its effects. We really don’t know how this is going to play itself out. We are generally having to take some really short term views and our best guess in terms of the balance of this year is that we are going to continue to find ourselves in a low interest rate environment which is going to be good for the continuation of the current market conditions.
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