Message from the MD - 4 July 2023
Category Newsletter: Message from MD
MESSAGE FROM THE MANAGING DIRECTOR
After 12 months of rising inflation rate figures there was a slight turn in the tide last month with inflation dropping to 6,2% . Although still outside the SA Reserve Banks target of 3-6%, it is definitely a move in the right direction. However, Reserve Bank Governor, Lesetja Kganyago, voiced his concerns and recently said that South Africans should expect higher interest rates for longer. With the Monetary Policy Committee meeting later this month, consumers should brace themselves for yet another interest rate hike of at least twenty-five basis points.
Although at a slower pace, sales at all five of our current projects are still being concluded regularly. It is telling how the higher interest rates have affected the affordable segment of the housing market, with clients opting to rather enter into a rental agreement for the near future.
This past month we were pleasantly surprised by a sudden increase in uptake of available office space at both our Eagle Canyon Office Park and 39B on Kingfisher, with five executive suites secured in less than three weeks. With the devastation caused by Covid to both the sale and rental of office space across the globe, this could be the first positive sign that this market may be on the road to recovery.
I am also happy to report that our Mooi Land residential development within the de Land Estate in Potchefstroom is now also fully sold.
Author: Nico Louw
