RESTORED CONFIDENCE = STRENGTHENING PROPERTY MARKET

Valentine’s Day in South Africa was a red-letter day, and before the clock struck midnight, the country looked and felt different…and so did its people. Yes, there’s a long road ahead, but a calm, steady hand on the tiller is a massively welcome sight, not least of all for the property market.

The state of the property market is one of the key gauges of local and international confidence levels in a country. It’s less sensitive and quick to react than currency, but nevertheless, react it does, surely and steadily.

Myles Wakefield, CEO of Wakefields Real Estate, says the political apocalypse of the last few weeks will serve to consolidate the gains which have been felt in the property market since mid-December. He’s watched the changing sentiment and increasing confidence for the past two months, and says it’s translated directly into feet through the door and increased property transactions: “January – traditionally not a high achieving month in the property world – has been Wakefields’ best month in the past 12, in terms of writing up new business. It’s about confidence levels among South Africans, and the promise a few months ago of a positive change on the horizon was enough to firm up minds and decisions of both buyers and sellers.”

It’s clear the property market welcomed the choice of the new ANC president, and his first eight or so weeks in office did nothing to dampen the belief that a brave new world is achievable. His election as the country’s president – and his decisiveness and commitment to righting South Africa on all the fronts which matter – accelerated everybody’s belief that a fresh, new path was not only possible, but within our grasp. It’s not simply South Africans who feel those positive winds of change, but the entire international community too, as the rand reacted favourably.  South Africa has by and large, not been able to benefit from the strong global economy to the extent we could have…and with a new regime in place, opportunities abound. 

Looking back over the past 10 or so months at the political, economic and every other possible upheaval, the nation’s relief today at what looks and feels like stability, is palpable.  It’s still early days – and words need to translate into deeds - but the changes taking place feel right for growth, and it’s that which we so desperately need to move forward.

In short, things are happening in South Africa that the property marketplace likes.