DO THE ELECTION RESULTS AFFECT PROPERTY?
Category Residential Property News
Wakefields' CEO Myles Wakefield says, "Certainly", and gives his reasons why ...
Very few surprises emerged from the final election results, and although the analyst's predictions were as close to accurate as one gets, the lack of confidence felt by many South Africans meant there was always that What If uncertainty. That's now gone, and we know for sure who is leading the way for the next five years. It's somebody who is strong, appears to have the key support needed from his political party, understands the global impact of local word and deed, and has committed himself to resolving the numerous major concerns which have tilted the axis for most South Africans.
And it's not just about our local response. Our currency post-election has barely been affected, which means we can assume that the outcome satisfied the international market. That predictability - or stability - is a vital element, in view of the ratings agencies' assessment of South Africa's investor safety.
From a property perspective, I feel that the president's long game has paid off, and the results are as good we could have hoped for. He knows the Big Five issues which need immediate attention - SOEs restructured (Eskom in particular), bloated public sector trimmed, policy uncertainty clarified, corruption rooted out and punished, and to make it easier, simpler, faster, more desirable to do business in South Africa.
Clearly, he's beginning right now with the cabinet. For South Africans weary of promises, this decisive follow through is a great confidence booster, and the ripple effect will be felt in the property market.
For South Africans paralysed by the upcoming election, the news is out. Those decisions which were on hold, can proceed, no matter what they were. It'll be a healthier, more normalised environment in which the property market can operate. No more waiting, it's time to get on with building South Africa.
Author: Anne Schauffer