PROPERTY: SA Homes Market Boost Due to Government Leadership Steps
Recent Gauteng Business News
Â“At the same time,Â” says Ronald Ennik, CEO of Ennik Estates, Â“it should shore up the confidence of those resident home buyers who, in spite of having no mortgage constraints, have been adopting a wait-and-see attitude to these and other issues on the political and economic landscape before making a commitment.
Ennik Estates specialises in marketing top end homes to both local and offshore investors, and is an affiliate of the ChristieÂ’s International Real Estate group.
ANC Youth League Suspensions Good for SA Homes Market
Â“The suspension of leaders in the Youth League, where the loose rhetoric on nationalisation and land grabs has been loudest, and potentially most harmful, will help to restore investor confidence in South Africa both at home and abroad,Â” says Ennik.
Â“The decline in confidence which led to MoodyÂ’s international ratings agency lowering its outlook on South AfricaÂ’s sovereign credit, will clearly require more acts of strong leadership by Government before it is reversed,Â” he adds.
Â“It is shifts in confidence levels, rather than factors such as interest rates, that are the key driving force behind the residential property market.Â”
Striving for a Confident SA Homes Market
To underline his point, Ennik says that, some 20 years ago, when interest rates were as high as 22 per cent, confidence was so firm that annual residential property market growth was around 30 cent in spite of that!
Â“Meanwhile, foreign investors have the added attraction right now of being able to take advantage of the weaker Rand in a SA homes market in which luxury homes are at nor near the bottom of a price cycle,Â” Ennik concludes.
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