Property Brief – November 2024

The latest BetterBond Property Brief is out!

With the Reserve Bank’s next Monetary Policy Committee meeting scheduled for 21 November, the general consensus among economists is that we will see another much-needed rate cut. How much the rate cut will be is still under debate. Even though the interest rate cut in September was not enough to give the property market a solid boost, it did cement a recovery in property market activity. Compared to the fourth quarter of 2023, home loan applications increased by an impressive 30%, with a quarter-on-quarter increase of 18%. Added to this, we saw a dramatic decline in the producer price index (PPI) from a double-digit figure in March 2023 to merely 1% in September. Just another reason why we can bank on another much-needed cut in lending rates in November and a further increase in property market activity.

The full list of data points included in this Property Brief, is as follows:

In the Economist’s Notes, Dr Roelof Botha explains why the emphasis on infrastructure in National Treasury’s Medium Term Budget Policy Statement (referred to as the “mini-budget”) is good for economic growth. The mini-budget provided enough information for cautious optimism because substantial public sector spending on infrastructure is a prerequisite for increased economic growth. This could have a ripple effect on the property market activity.