The residential property market was unlikely to escape its difficulties in the near term, essentially due to the precarious state of household finances, Standard Bank said on Friday.
The Standard Bank median house price was recorded at 2,6% year-on-year in July.
This was an improvement on the negative growth rates witnessed in the preceding three months.
South Africa’s intensifying economic slowdown and positive developments on the inflation front suggested that SA might be nearing or be at a peak in monetary policy tightening, the bank added.
”However, the residential property market is unlikely to exit its quagmire in the near term.”
The residential property market was driven primarily by interest rates, inflation, employment growth, and consumer sentiment.
”As things stand, the drivers of residential property suggest that the housing market will continue to remain weak over the next 12 months.” – Sapa