Finance minister Enoch Godongwana delivered his maiden budget speech this week with few surprises, notes TPN Credit Bureau.But what impact will it have on the rental market, amid an interest rate hike cycle.
Finance minister Enoch Godongwana delivered his maiden budget speech this week with few surprises, notes TPN Credit Bureau. But what impact will it have on the rental market, amid an interest rate hike cycle?
Godongwana did concede that the state cannot plan for permanent expenditure on the basis of short-term increases in commodity prices. “Although the number of residential tenants in good standing improved from 77.6% in the fourth quarter of 2020 to 81.4% in the fourth quarter of 2021, this is still short of the 81.88% recorded in the fourth quarter of 2019, prior to the onset of the pandemic in South Africa,” said Marcus.
Gauteng commercial tenants recorded the weakest rental collections in the sector with only 66.73% in good standing for the last quarter of 2021, while the Western Cape recorded the best performing commercial tenants with 77.31% in good standing with their landlords, he said. “What these figures reveal is that some provinces require more stimulus than others,” said Marcus.South Africa’s Reserve Bank continued with its rate hike cycle in January, which will have an impact on the housing sector.
After a small recent hike following a long period of low rates, South African rates are also widely expected to be increased in small increments this year and beyond, said Smuts.Does the same inverse relationship exist between the repo rate and rental price growth, whereby higher rates will put downward pressure on rental inflation?
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mail & Guardian's 200 Young South Africans 2022 - Nominate now - Mail & Guardian 200 Young South AfricansSPONSORED: The mailandguardian 200 Young South Africans is back! We are committed to celebrating SA's FutureFocused youth! Call for nominations open 25 February 2022 17h00 SAST. To participate, send your submission to: FutureFitYouth 200YSA2022
Read more »
Government set to introduce new regulations to replace South Africa’s state of disasterHealth Minister Dr Joe Phaahla says various departments are ‘working on alternative measures’ to replace regulations related to the National State of Disaster which could be presented to the National Coronavirus Council (NCCC) as early as next week.
Read more »
ANC in downward spiral of debt, growing social dependence, massive wage bill - South Africa TodayWith the exception of a few rays of hope, which will have taxpayers breathing more easily for a while, it is clear that the government is caught in a downward spiral of debt, growing social dependence and an exorbitant wage bill. The good news first: It comes as a relief that the fuel levy and […]
Read more »
This is what Russian invasion of the Ukraine will cost South AfricaEconomist predicted R22 a litre for fuel earlier this week, but should the rand continue to weaken on the back of a prolonged war and higher oil prices, worse may be in store for consumers.
Read more »