Dr Andrew Golding states that market commentators generally anticipated this and, taking into account the heightened inflationary risks viewed against the backdrop of a still sluggish economy, the MPC's stance appears to be a considered and moderate approach.
While such decisions depend on current economic data, which is subject to influence by a variety of macroeconomic factors, including global impacts, he is of the view that interest rates will remain stable for the remainder of 2013.
While all regions in the group are reflecting significant growth in sales turnover, those which are performing exceptionally well for the financial year to date (March to June 2013) are the Western Cape (with the Cape Town metropolitan areas experiencing a very busy winter season despite this traditionally being a quieter trading period), Gauteng and KwaZulu-Natal. Its sales of residential property in prime overseas destinations such as Eden Island in Seychelles and Mauritius are exceeding expectation considerably.
Despite ongoing challenges for consumers in respect of rising costs of fuel, electricity, food and property rates, coupled with a stricter mortgage finance regime, the group notes a certain uptick in the residential property market in South Africa in general. There is an increasing sense of 'normality' in the market, as properties change hands on a regular basis and for the usual reasons of relocation for business or personal preference, upgrading or downscaling as individual situations change in life, first time buyers entering the market, among others.
While the market for homes priced below R3 million remains the most active, there is a greater spread of interest and sales activity taking place across all price sectors, including the price brackets above R3 million and over the R10 million and R20 million mark. While sellers are becoming accustomed to the current trading conditions and need for realistic, market-related pricing, the flow of stock becoming available for purchase is not always sufficient to meet the demand, resulting in stock shortages in some areas and in some instances seeing a number of offers competing for one property.
The group's outlook remains positive for the future and for the forthcoming year ahead.
