Last week the Monetary Policy Committee voted unanimously for a 25-basis point increase to our interest rate, taking the prime lending rate to 10,50%. This was done to buffer the expected increase to our inflation figures in the coming months, with the sharp increase in fuel prices being the main cause. The Reserve Bank’s action was necessary to confirm to the world that they are serious about keeping our inflation rate around 3,0%, with a one percent margin to either side. Hopefully this increase will be the only one required to reign in the pesky rise in our inflation figures.
With no end in sight in the ongoing conflict in the Middle East, world economies will need to buckle up for a bumpy ride while the oil price remains in the region of $100/ barrel. Some commentators speculate that it might be a very long time, if ever, before we see prices back at $60/ barrel. This is bound to have a dire effect on world economies, shaving digits off their projected growth forecasts. Let’s all hope that a resolution can be found to the conflict, and sooner rather than later!
With winter quickly approaching we enter a time of year where excellent construction progress is normally achieved. Unfortunately service delivery, not only in the City of Johannesburg, but also in all the other municipalities we deal with, has declined so drastically that it is almost non-existent. Currently the entire offices of the JB Marks Municipality (Potchefstroom) are closed, and have been so for the past two weeks. No plans are approved, no certificates are issued and no revenue is generated, while inflated employee salaries are most surely paid! We can only hope that this will change after the local government elections in November!
Construction to the first seven homes in the Elemente security estate is well under way with a few roof structures already up. The Homeowners Association’s appointed scrutinizing architect also reported that there are several more house plans submitted for approval and once finalised, construction to these homes will also commence. As previous experience has shown, building activity in the estate will increase exponentially once the first homes currently under construction near completion.
Elemente offers one the opportunity to own a home within a security estate next to a magnificent water body where one can regularly hear the call of the majestic Fish Eagle, something that you will not find anywhere else in Potchefstroom - or anywhere else in the North-West Province for that matter!
Within the coming week our civils team will complete the installation of bulk services to our Kaelo residential site in Albertsdal, Alberton.
Kaelo is our second residential project within the Melonkhule Estate and will comprise of fifty simplex homes in either a two- or three-bedroom configuration. Construction to the homes will commence as soon as the project is enrolled with the National Home Building Registration Council (NHBRC). The projected completion date is within the last quarter of this year.
