Buy-to-let investors hoping to eke out returns from residential property should brace themselves for a market slow down. Standard Bank, a compiler of house price data, warned Thursday that a slow down in house prices is “inevitable”.
Standard Bank attributes this malaise to waning investor appetite combined with constrained demand and finances from owner-occupants. Rising interest rates are one of the key factors in reducing demand, says the Bank.
House price fall may keep interest rate down
The sharp slowdown of house price growth should provide the South African Reserve Bank with ammunition to limit interest rate rises.
According to Standard Bank's latest residential property gauge, released on Thursday, the rising interest rates are one reason the housing market has gone from 18,5 percent year-on-year growth up to January 2006 to 6,9 percent year-on-year growth in January this year.
No comments:
Post a Comment