Sona 2019 Positive and Full of Hope for Economy and Property

President Cyril Ramaphosa’s SONA 2019 (state of the nation address) was very positive, and one of hope and taking the next steps towards his “new dawn” and economic renewal. Samuel Seeff, chairman of the Seeff Property Group says that, ahead of the address, the group also noted with encouragement that business confidence had stabilised.

Seeff said further that he was particularly encouraged by the investment successes, and firm stance and proposed action to deal with corruption and maladministration including prosecution and the recovery of funds and assets.

The progress around governmental cost-cutting and the state structure and administration, management of the SOEs, and in particular the proposal around dealing with the Eskom crisis should be very positive for the economy, he said further.

The focus on economic growth sectors including the ocean economy, tourism and so on, are all positives, and we note with encouragement the news of a significant gas find off the coast of Mossel Bay.

On the issue of land, the proposal to use state owned land for redistribution and other proposals including a Human Settlements Bank are all noted.

Seeff said further that the group is encouraged by the stability that seems to be returning to the economy and currency, the rand currently standing at around R11.58/USD, R14.28/EUR and R16.23/GBP, notably better than at the height of the Zuma-administration.

Our message is indeed, Mr President, we are “watching this space”, and looking forward to a renewed growth path, he said further.

For now, though, we should note that there is no “magic bullet” and economic recovery is likely to be gradual, simply because there is much to be done. On the back of this, the property market will continue to trade fairly flat with mostly sideways activity during the early part of this year.

The “must buy and must sell” market, generally below R1,5m (up to R3m depending on the area), will remain active and well-priced properties will sell within a reasonable timeframe.

The second market, i.e. those with discretionary money who do not have to buy or sell, are likely to continue waiting and watching how things unfold as we lead up to the National Election which has now been confirmed for Wednesday, the 8th May.

That said, Seeff’s advice to buyers and sellers, is that there is no reason to wait if you need to, or want to sell. Price growth has remained fairly subdued, and the lending landscape remains positive. While it may be riskier now, you could ultimately see greater returns.

Sellers though will need to keep their price expectations in check if they want to transact right now. There are no guarantees, and Seeff concludes that if you need to, or want to sell, be sure to consider all serious offers.

Source: Seeff Properties