{"id":186041,"date":"2017-07-18T13:33:42","date_gmt":"2017-07-18T11:33:42","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=186041"},"modified":"2017-07-18T13:33:42","modified_gmt":"2017-07-18T11:33:42","slug":"this-market-trend-highlights-the-current-economic-climate-in-south-africa-right-now","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/186041\/this-market-trend-highlights-the-current-economic-climate-in-south-africa-right-now\/","title":{"rendered":"This market trend highlights the current economic climate in South Africa right now"},"content":{"rendered":"

Data from the FNB holiday town house price index shows a continued slowing growth trend, along with the emergence of a more concerned and cautious consumer in a weak economic environment.<\/p>\n

According to John Loos, FNB’s household and property sector strategist, this could exert additional pressure on strongly holiday home-driven markets in the country.<\/p>\n

Loos said that the holiday home-driven markets, both coastal and inland, have had a reasonably good run since around 2013. But he warned that signs of softening have emerged.<\/p>\n

In recent quarters, its growth has started to lose momentum, from a relative revised high of 6.4% year-on-year as at the third quarter of 2016,\u00a0 to 4.8% by the second quarter of 2017.<\/p>\n

Loos pointed out that while 4.8% year-on-year price growth remains a reasonable rate in a weak economy, it does translate into a shift into negative real growth, given that it is now below consumer price inflation which remains above 5%.<\/p>\n

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“It is realistic to expect slower holiday town markets, possibly underperforming the more primary residence-driven major metro regions, given that a tighter economy will probably drive the emergence of more conservative households, increasingly concerned about their financial future.<\/p>\n

“In such an environment, non-essential home buying – such as holiday homes – become less of a priority,” Loos said.<\/p>\n

The lender also pointed to a lower estimate of holiday home buying expressed as a percentage of total home buying in the second quarter.<\/p>\n

\"\"<\/a><\/p>\n

Loos admitted that one quarter\u2019s decline is too early to draw hard and fast conclusions; however, he said that FNB\u2019s valuers have perceived some market weakening in the coastal holiday town markets.<\/p>\n

And looking ahead, the analyst said that the signs are that the FNB holiday towns house price index year-on-year growth rate is slowing, with the forecast that holiday towns may revert to underperforming the larger cities in terms of house price growth.<\/p>\n

This is also based on the expectation that the stagnant economic conditions in South Africa will persist, that consumer confidence will remain weak, and that a more cautious household focused more on essentials and less on luxuries will emerge.<\/p>\n

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Read:\u00a0 The average house price in Cape Town vs Joburg<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Data from the FNB holiday town house price index shows a continued slowing growth trend, along with the emergence of a more concerned and cautious consumer in a weak economic environment.<\/p>\n","protected":false},"author":10,"featured_media":175099,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[76,26],"class_list":["post-186041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-fnb","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/186041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=186041"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/186041\/revisions"}],"predecessor-version":[{"id":186067,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/186041\/revisions\/186067"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/175099"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=186041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=186041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=186041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}