The local property industry said for the long-term health of the industry and the sustainability of the local economy, it is important that the country continues addressing barriers to entry for first-time home buyers. Picture Henk Kruger/African News Agency(ANA)
REBOSA is hoping that a fair portion of the transformation fund that President Cyril Ramaphosa mentioned in his State of the Nation Address (SONA), will be channelled to the real estate industry to facilitate transformation.
In his SONA 2025, Ramaphosa said they will set up a transformation fund worth R20 billion a year over the next five years to fund black-owned and small business enterprises.
“We want a nation in which prosperity and opportunity is shared by all. For many decades our economy has been held back by the exclusion of the vast majority of the South African people. Black South Africans were deprived of land, of capital, of skills, of opportunities. Our economy was starved of the potential of its people. And that is why we need to transform our economy and make it more inclusive,” Ramaphosa said.
The president said it is for that reason that the government's focus is on empowering black people, women and persons with disabilities because they were deliberately excluded from playing a key role in the economy of their own country.
REBOSA CEO Jan le Roux said about R200 million will make a difference in the real estate sector for its transformation ideals. “Currently, just 30% of agents are black,” Le Roux said.
The representative body of the South African residential real estate industry whose members collectively employ over 18 500 registered practising estate agents, also lauded the President's courageous stance on universal principles saying they sincerely hope that his charm offensive would work as SA was but a small economy in the greater scheme of things.
“We cannot afford disinvestment and the cutting off of funding. We are hopeful about his aims to stimulate growth.”
FNB CEO of Home Structured Lending Chris Labuschagne, said recent political developments, such as the United States (US) decision to halt funding to South Africa over land expropriation policies, has introduced uncertainty. “This could have far-reaching implications for foreign investment and economic stability,” Labuschagne said.
He said that infrastructure challenges and issues like load shedding (even though improved compared to a year ago) disrupt daily life and business operations, affecting property values and investor confidence. “Addressing these infrastructure challenges is crucial for the market’s long-term stability.”
Labuschagne said the pervasive threat of the construction mafia discourages both existing or prospective investors locally and internationally.
“The associated risks make the South African property market less attractive, hindering economic growth. Therefore, addressing these challenges requires a concerted effort from law enforcement, government authorities, and industry stakeholders to restore confidence in South Africa’s property market.”
Meanwhile, Absa Home Loans managing executive Nondumiso Ncapai said for the long-term health of the industry and the sustainability of the local economy, it is important that the country continues addressing barriers to entry for first-time home buyers.
She said currently, inflation, high fuel and food prices, and increased municipal rates are reducing disposable income, making it harder for first-time home buyers to save for deposits and some of the upfront costs related to property purchases.
“Moreover, the high-interest rate environment, which has only experienced easing in the recent months, has also affected the participation of first-time home buyers post the Covid-19 pandemic. Since interest rates have started falling, however, we are seeing an improvement in application volumes and activity from the first-time buyer market. Further interest rate cuts will go a long way in supporting wider access to homeownership,” Ncapai said.
PROPERTY