PROPERTY NEWS - The recent decision to keep the repo rate unchanged was not unexpected, according to the Seeff Property Group, and they explained just how this could impact those putting property for sale, and those looking to buy.

The group CEO, Stuart Manning, revealed that they expected nothing less than the decision to leave the rate unchanged, while he also believes that the interest rate will remain flat for the rest of the year.

All of this comes after the Monetary Policy Committee of the South African Reserve Bank chose to leave the repo rate at 6,50% (base home loan rate of 10%).

Manning says that because the economy remained fairly slow and there is pressure on the CPI due to the increased cost, as well as some new volatility in the currency, the market expected nothing less than the decision taken.

Turning to the state of the property market at present, he said that South Africa was experiencing somewhat of a hybrid market. This is because some areas are starting to perform quite well, while others are still facing a bit of a battle.

However, their outlook remains fairly positive. There was a notable improvement in sentiment across the board following the appointment of President Cyril Ramaphosa, but the January surge was knocked a few steps back after the uncertainty regarding land expropriation in the country.

Looking at the Gauteng market, he was pleased to note that there had been numerous purchases that broke the R20 million mark, which showcases a returning confidence. It is also a good sign considering that these are the markets that are usually first to feel recovery.

On the opposite side of the spectrum is the Cape metro, which is now feeling the impact of the poor economy, dip in tourism as well as the severe drought. This has resulted in difficult conditions for trading - most notably at the upper end of the market.