The full effects of ongoing interest rate hikes on SA’s property sector is the focus in this edition of the Business Day Spotlight.
Our host, Mudiwa Gavaza, is joined by John Loos, property economist in FNB’s commercial property finance unit. Their discussion centres on the state of the country’s property sector following the SA Reserve Bank’s latest rate hike.
On Thursday, the central bank’s monetary policy committee (MPC) moved to raise the repo rate by another 50 basis points (bps) to 8.25% as SA battles myriad problems including rolling blackouts, a stagnant economy and a currency at a record low.
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The rate was last above 8% in May 2009, fourteen years ago.
Loos says this latest hike on its own has a limited dampening impact on the commercial property market.
Topics of discussion include: the reaction to the May 25 rate hike by the SA Reserve Bank, state of the local property sector, operating dynamics between commercial and residential property, and the place of lenders in the market.
Business Day Spotlight is a TimesLIVE Production.
For more episodes, click here.
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