Page 12 - Kyalami Estates Issue 3 Aug 2024

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3.0 Folder (Inner)
TRAVEL
EDITORIAL

A TIME TO BUY, SELL OR HOLD

IN KYALAMI ESTATES?

B Y ROB HUD SON, RE/MA X ONE

This year has been a challenging one for the South African property
market, Kyalami Estates included. The national statistics are reflective

of a sluggish market, with the Repeat Sales House Price Index
increasing by 0.6% y-o-y in April 2024. Inflation adjusted, this is a 4.3%

loss in value and the lowest y-o-y increase since August 2009.

ey market drivers are the high cost of borrowing, 7.5% in 2023, hence the interest rate hikes, but as of June
economic uncertainty (elections and energy 2024, it is down to 5.1%. So, inflation is going in the right
crisis), high inflation (less disposable income) direction.
and unemployment levels. Looking forward, let's
Kunpack these key economic drivers. Unemployment: This peaked at 35.3% in Q1 of 2021 and
decreased to 32.9% in Q1 of 2024. Still high, but a positive
Cost of borrowings: SARB’s lending rate has remained sign that there is improvement.
steady at 11.75%, with the intention of combatting inflation.
In line with inflation improvement, expert sentiment is
generally in favour of a rate reduction before year end.

Economic uncertainty: As a whole the election was
successful, peaceful and a testament to true democracy. A
sense of stability prevails and investor sentiment is on the
up, as reported by Leila Fourie of the JSE in early August. The
rand also strengthened and stabilised. On the energy side, is
it too good to be true – what has happened to load shedding?
Inflation: This deteriorated from a low of 3.2% in 2020 to

10 Kyalami Estates • CONNECT • Issue 3 • 2024