2017 - CAUTIOUSLY OPTIMISTIC

Myles Wakefield, CEO of Wakefields Real Estate, believes that although 2016 held some nasty curved balls, the fall-out wasn’t nearly as dramatic as it could have been...and our strong SA property market withstood the onslaught admirably.

Most view 2016 in the light of a speed bump rather than a crash such as 2008, and we could view it, much like stock market terminology, as a ‘correction’ but a correction in time, rather than in price. 

Looking back over the 2016 landscape gives us a fair indication of what 2017 holds. Despite the colourful local and global gymnastics, there was no noticeable increase in the volume of properties on the market as usually happens in a depressed economy. That says something, and those low volumes could be an indicator that the market has bottomed out. 

The recent news that the Reserve Bank held the interest rate stable is good news for hard-pressed consumers, but particularly so for those first-time buyers who’ve made the decision to enter the property market this year. Statistics from bond originators, Ooba, show clearly that the bulk of would-be South African property buyers falls into that first-time homeowner category, and it’s very positive news for our South African society that that sector of the market is growing.   

For Wakefields, 2017 has begun really positively with a great deal of activity throughout KZN, and more and more commentators who’re in the know, are optimistic. All of the optimism of course is predicated on the stability and wisdom of local and global personalities and events, but slowly, there are murmurings around the possible growth of the American economy - more than expected - the knock-on effect of positive South African economic growth - more than expected.  A number of commentators are cautiously optimistic about signs of growth - no matter how small - and that positivity is great to hear. Taking a look at the number of developers and developments which are coming off the drawing boards and out of the ground throughout KZN, it would difficult to argue tough times. South Africans are looking to their futures, and they want homes. 

It’s all about confidence, confidence in our politicians globally and in their ability and determination to get things right...and of course, confidence in our currency. 

Interestingly, last year our currency went up 16 percent against the dollar, and around 33 percent against the pound. A strong rand works wonders for confidence - quite simply, and understandably, people like to feel wealthy globally. No, we’re not out of the woods in terms of a ratings downgrade, nor is our political landscape seismically secure, but if we can grow the economy, our levels of confidence will rise...and so will the world’s view of South Africa. Confidence is key, and judging from our buoyant start to 2017, confidence levels are clearly climbing.  

For 2017, we can’t see into the future, and there are a number of global uncertainties which will, one way or another, impact on everybody. But at Wakefields, the year has started well, and all signs indicate a fresh and positive outlook by ever-resilient South Africans who want, above everything, to have their own homes in one of the most beautiful countries in the world.