Message from the MD - 1 Aug 2023
Category Newsletter: Message from MD
Admitting that one was wrong is never easy, but I am very pleased to have been wrong with my prediction of another 25-basis point increase to the interest rate which I made in our last newsletter.
With the rather dramatic 0,9% drop-in the inflation rate the Reserve Bank's Monetary Policy Committee had an easy call to make in keeping the interest rate unchanged. However, Reserve Bank Governor, Mr Lesetja Kganyago, last week warned of possible future rate increases, but this will not happen whilst our inflation rate stays below 6%. Furthermore, if the inflation rate remains within the 3-6% parameters, as set out by the MPC, consumers may expect a welcome reduction in interest rates by early 2024.
During the past few weeks we have experienced a definite shift in market sentiment with a welcome spike in interest across all segments of the property market - residential, industrial, and commercial. With many of our older projects sold out we are now in a position to launch our next residential projects.
This once again confirms that there will always be a need for quality housing at an affordable price!
Author: Nico Louw
