Mboweni to take drastic action
Fin24.com South Africa
May 29 2008 9:04AM South African central bank governor Tito Mboweni said on Wednesday "drastic measures" were needed to bring down inflation, and signalled that monetary policy had to tighten further.
Statistics South Africa said earlier on Wednesday that CPIX consumer inflation accelerated to a near 5-1/2-year high of 10.4% year-on-year in April from 10.1 percent in March. It has stayed above a 3 to 6 percent target range since April 2007.
"You don't have to be a genius to tell that interest rates have to tighten. When CPIX is above that (target) range, clearly drastic measures have to be taken," Mboweni said at a seminar in Johannesburg.
Asked what he meant by 'drastic', Mboweni did not elaborate but said he had casually discussed a 200 basis points increase with a colleague.
Article on Fin24.com
Spoilt for choice, property buyers turn to technology
RodneyHayter.com - South Africa
With residential property having rapidly become a buyers' market, Realestateweb's recent introduction of a leading property search capability, which allows users to select from over 155 000 properties, comes at a good time.
Said Realestateweb.co.za editor, Jackie Cameron: "The property market has taken a breather, not least as a result of a series of interest rate hikes that have brought a long period of sharply rising prices to an abrupt halt.
"While most economists believe that this represents a healthy correction in the market, there are also many more buying opportunities - making the search for the right house a bigger and more complex job. Our property search helps buyers ensure they get the best out of the market."
SA top-end property still buoyant
Business Day - South Africa
The recent record sale of a prime Clifton beachfront penthouse for R48m bodes well for the future of SA's luxury apartments, writes Anna-Marie Smith.
Property statistics reflect that this luxury R48m penthouse apartment, measuring 716m² in the well known Eventide on the Clifton beachfront, exceeds the 170m² for the one of the highest prices of R37,6m fetched in Gauteng for a Michelangelo Towers, Sandton apartment, also the second highest price paid for a Gauteng apartment according to available statistics.
Yet, a larger Gauteng apartment than the highest seller in Clifton, at La Residence Sandton measuring 788m² , sold for only R27m earlier this year.
Litany of woes hits residential property market
Business Report - South Africa
A long list of negative influences is likely to result in a 21 percent drop in the value of new mortgage loans and readvances this year, from the R376 billion granted last year, according to First National Bank (FNB) property strategist John Loos.
"It's hard to remain optimistic about the residential sector," he said, forecasting a period of price deflation, that is, falling prices.
He said two indices - Lightstone and Absa - showed growth in house prices had fallen into single digits.
"New loans have been in negative territory since mid-2007" and house prices would follow this trend, ending in year-on-year deflation of 7 percent in the second quarter of next year.
Prices would recover only in the second half of next year.
Mboweni to take drastic action