| Reserve Bank could raise rates next year, economists says |  | | According to certain analysts, the stronger growth in the South African economy, spurred by an improved global environment, will give the Reserve Bank scope to raise interest rates by next year. Read this very informative article. |
Reserve Bank could raise rates next year, economist says - Business Day, 07 February 2013
Stronger growth in the economy, spurred by an improved global environment, will give the Reserve Bank scope to raise interest rates late next year, according to analysts. Given the sluggish nature of South Africa’s economic recovery at present, most believe that the Bank will keep monetary policy steady this year, despite rising inflation.
But local money markets are betting that the Bank will raise its key repo rate by half a percentage point to 5.5% by November next year. That would be the first interest rate hike in South Africa since the middle of 2008, when the global financial crisis struck.
“In the latter half of 2014 the world will be a lot less gloomy,” Standard Bank’s group chief economist Goolam Ballim said on Wednesday. “We think monetary policy will decalibrate to equilibrium from ultra loose levels,” he said.
Standard Bank’s latest forecasts predict that prime lending rates set by commercial banks will rise to 9% next year, from 8.5% at present. However, Mr Ballim also thinks there is a good chance that the Bank will first cut interest rates by half a percentage point later this year, to extricate the economy from what he describes as “stagflation lite”.
Stagflation is a term which describes an economy with slowing economic growth, rising inflation and high unemployment.
“It is possible that as inflation decelerates, the Reserve Bank may see a window to cut interest rates, in sympathy with a weak growth environment,” Mr Ballim said. Still, Standard Bank expects economic growth to quicken to 3.5% next year from 2.5% this year, in line with consensus estimates. Read more... |
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| Weekly E-News | | | MARKET TRENDS | SA growth struggles into 2013 - Moneyweb, 04 February 2013
With many of us already a little stale into the new working year (most now starting their third week back at work and new veterans of the traffic snarl and water cooler politics), what is the sense of where we are and where we are heading? |
| | GENERAL PROPERTY NEWS | Can levy double & non-paying owners? - Property24, 07 February 2013
My first question pertains to a special levy that our body corporate in our estate has imposed. They have decided that we should pay a once off special levy of R5 900 to offset the debt that was created through non-payments of the owners in the estate. Is this our problem?
Twin Peaks model to boost SA's financial system - eProp, 06 February 2013
South Africa’s move to a Twin Peaks model of regulation will boost the country’s resilience, as well as create a stable financial system, says the Financial Stability Board.
Squeeze on financing for affordable housing - eProp, 06 February 2013
The deteriorating creditworthiness and affordability among South Africans has affected the appetite for advance loans for affordable houses, according to Nedbank’s affordable-housing head Jeff Lawrence.
GAPP Transit orientated development and it's application in a South African context - eProp, 05 February 2013
Transit Orientated Development (TOD) is an urban design method of linking transit infrastructure to property development in a sustainable way.
Construction industry & cover pricing - Property24, 04 February 2013
It has recently been reported in the media that the Competition Commission’s head of advocacy and stakeholder relations, Trudi Makhaya, says they expected to reach settlements with most applicants who partook in the fast-track settlement project for the construction industry by the end of this year. |
| | RESIDENTIAL PROPERTY NEWS | 2012 saw low mortgage advances growth - Property24, 06 February 2013
The value of outstanding credit balances in the South African household sector recorded growth of 9.9 percent year-on-year (y/y) at the end of 2012 from 6.3 percent y/y as at the end of 2011.
Home building costs and land values - Property24, 06 February 2013
In the latest Housing Review Q1 2013, Absa has revealed that as of the fourth quarter of 2012, it was R553 800 or 34.8 percent cheaper to have bought an existing house than to have built a new house in 2012.
Holiday homes back in vogue - Property24, 06 February 2013
http://www.property24.com/articles/holiday-homes-back-in-vogue/17104
Holiday town housing markets may have reached some price stability in 2012, according to the FNB Holiday Home Market report.
Reducing risks in the financial management of a Sectional Title scheme - eProp, 05 February 2013
Recent reports which point to dishonesty during the financial management of sectional title schemes by managing agencies have resulted in trustees reviewing the agreements in place with their managing agents and insurers as well as their fiduciary roles as trustees.
Buyers battle with home affordability - Property24, 05 February 2013
The affordability of housing remained favourable during the course of 2012, reflected by the ratios of house prices and mortgage repayments to household disposable income, says Absa.
Low house prices to continue in 2013 - Property24, 04 February 2013
Although house price growth improved in 2012, nominal house price growth is expected to be in the region of 2.5 percent for the year, according to the FNB House Price Index for January.
Buy-to-let and tenant trends in 2013 - Property24, 01 February 2013
The Tenant Profile Network (TPN) data for the third quarter of 2012 indicated that tenants were making their rental payments responsibly. |
| | COMMERCIAL PROPERTY NEWS | New malls in Gauteng and Limpopo - Property24, 06 February 2013
Consumers in the rural village of Moletlane, Zebediela in the Limpopo Province are set to benefit from a conveniently-located new shopping precinct following the recent announcement by Nedbank Corporate Property Finance that it has financed and taken an equity stake in the 15 016 square metre Zebediela Plaza.
Non-residential Building plans and completions: Office, Retail and Industrial - eProp, 05 February 2013
The value of recorded Non-residential building plans passed between January 2012 to November 2012 increased by 6.9% compared to same period 2011; industrial property in front of the pack in planning and completions. |
| | | ESTATE AGENT NEWS | Referrals build business for RE/MAX - Property24, 07 February 2013
In a world filled with mass advertising and invasive marketing schemes, people prefer to buy from those they know and trust.
Pam Golding Properties makes inroads in Namibian Property Market - eProp, 06 February 2013
Namibia is experiencing increasing interest from South African home buyers, mainly among those seeking to acquire homes in Windhoek and leisure and residential properties in Swakopmund.
RE/MAX marks 40 years of real estate - Property24, 01 February 2013
RE/MAX LLC is marking its 40th year by celebrating extraordinary growth and success at a time when the recovery in the world’s housing market is gaining momentum. |
| | SPECIFIC AREAS | Strong demand for homes in Umhlanga - Property24, 07 February 2013
Following the circumnavigation of the ‘fiscal cliff’ in the USA and some relief in the Eurozone countries, globally investor confidence has cautiously brightened.
Young buyers keen on Pinetown homes - Property24, 06 February 2013
Pinetown is located approximately 16 kilometres west and inland of Durban central in KwaZulu-Natal and is currently seeing a rejuvenation among property investors, particularly first-time buyers.
Last of Cape Town penthouses sold for R55m - Moneyweb, 03 February 2013
The last of three luxurious Cape Town penthouses has been sold to a Nigerian businessman for R55 million, the Sunday Times reports.
Soweto’s property market is booming - Moneyweb, 01 February 2013
The property market in Soweto is booming; people are eager to purchase properties because of the affordability, thriving retail areas as well as its accessibility to Johannesburg.
Renewed interest in Garden Route Leisure homes and residential property - eProp, 01 February 2013
The Garden Route, which stretches from Riversdale through to Plettenberg Bay and is home to lush green landscapes, indigenous forests, lagoons, lakes and mountain backdrops, encompasses some of South Africa’s most appealing and scenic coastlines. |
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