The experts predict an onogoing property price slowdown in South Africa in 2019, claims John Loos, property sector strategist at FNB Commercial Property Finance.
As he puts it, the nominal average house price growth rate in the upcoming year will be slower than the one of 2017 and 2018, making it 3.7%. This would also, then, translate into another year of house price decline in real terms, highlights Loos.
“FNB does foresee slightly better (but still weak) economic growth of 1.4% in 2019, compared with 0.7% for 2018. Against this, however, a further interest rate hike is projected in 2019 after the late-2018 hike,” he adds.
“This is expected to cause slightly more conservative property spending in 2019 – in what is always a highly credit-dependent market.”