Brace for Covid-19 property, economic pain, warns Siphamandla Mkhwanazi, FNB property economist

Loading player...
Siphamandla Mkhwanazi, FNB Property Economist, says the South African economy is expected to be in a short, but deep recession this year. The economy is expected to shrink by 4.5% y/y for the year - and that is the base case and considerably worse than the (-1.5%) contraction experienced in 2009. In this podcast, he speaks to Jackie Cameron, of BizNews, about the likely impacts of containing Covid-19 on the country's property market, which he outlines in an in-depth report. "For the housing market, we expect a more dramatic impact on transaction volumes, rather than home values. House price growth will likely slow in the low to middle-priced segments, and nominal decline will deepen in the upper end to reflect weakening fundamentals," he says. It's a buyers' market, though buyers are thin on the ground and deals are hard to get through, with logjams in the system. Also expect more repossessions as some property owners fail to secure extra financial help to survive what is likely to be a very challenging time, he says. - Jackie Cameron Learn more about your ad choices. Visit megaphone.fm/adchoices
8 Apr 2020 1AM English South Africa Investing · Business News

Other recent episodes

Roy Tilley: The municipal "Rates Randage Monster" strangling South Africa's property owners

Durban businessman Roy Tilley says a deeply flawed municipal rates formula is pushing property owners and small businesses toward a financial breaking point. In this interview, the Queensmead industrial property owner explains why he believes ever-rising rates are becoming impossible to absorb, hurting tenants, jobs and investment, and argues that…
10 Apr 9AM 20 min

BNC#8: Magnus Heystek Q&A - The brutal truth about South Africa’s financial future

A sharp, no-holds-barred conversation on South Africa’s financial reality - rising offshore limits, shrinking property values, and the struggle for economic revival. From Johannesburg’s decline to gold’s surge, and investor psychology to policy failures, this discussion cuts through the noise. It’s a candid look at risk, resilience, and the tough…
10 Apr 6AM 34 min

Boardroom Talk: What to make of yesterday's massive market surge

In this Members Only episode of Boardroom Talk, Alec Hogg unpacks one of the most dramatic 24-hour market reversals in years. After weeks of geopolitical tension driven by the Iran conflict and soaring oil prices, a surprise ceasefire triggered a powerful global rebound — with the JSE leading emerging markets…
9 Apr 11AM 15 min

BNC#8: Anthony Ginsberg Q&A - Inside the $1 trillion deal, US tensions and urgent call to act

Sitting down with Alec Hogg, Anthony Ginsberg discusses South Africa’s economic future, global positioning, and urgent need for pragmatic leadership. From strained US relations and missed trade opportunities to AI disruption and investment potential, the discussion highlights both risk and opportunity. With billions in foreign capital waiting, the message is…
9 Apr 8AM 40 min