Property market expected to gain momentum as interest rates likely to drop
The interest is at 7.75%, with the prime lending rate currently 11.25%.
Home owner, insurance, property. Image: Tumisu on Pixabay
Stephen Grootes speaks to Herschel Jawitz, CEO of Jawitz Properties, about the anticipated growth in the property market, driven by expected interest rate cuts.
Listen to the interview in the audio player below.
The South African Reserve Bank's Monetary Policy Committee (MPC) is set to announce the interest rate decision on Thursday, 30 January, with all expectations that an interest rate cut is on the cards.
This is welcome news for home owners and potential property buyers.
The interest is at 7.75%, with the prime lending rate currently 11.25%.
Economists are forecasting interest rates to be slashed by another 25 basis points when the MPC meets on Thursday.
Speaking to Stephen Grootes on The Money Show, Herschel Jawitz, CEO of Jawitz Properties says the sector is already beginning to see a shift in buyer demand and increased activity in the market.
"We're at the beginning of the interest rate cutting cycle, but I think we're seeing a general shift in sentiment. I think the GNU has been positive. I think loadshedding. Obviously the interest rate cycle. Petrol prices have come down..."
- Herschel Jawitz, CEO - Jawitz Properties
"There's been a lot more good news than bad news, and I think for the first time in some time consumers and home buyers are lifting their heads and saying 'maybe we can take a longer term view of the market."
- Herschel Jawitz, CEO - Jawitz Properties
"I think the southern tip of Africa is probably a good place to be at the moment...we've got lots of good signals. relative stability and if you're willing to take the risk of optimism in Johannesburg for its challenges, there is incredible value and just as long as you're taking a long-term view."
- Herschel Jawitz, CEO - Jawitz Properties
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