Property market pinch to relax next year – FNB

By Ronnie Morris

Cape Town – An extended slowdown in the residential property market, based on a soft global landing, was expected in the near term as the National Credit Act (NCA) bit on top of increased interest rates, First National Bank (FNB) strategist John Loos said yesterday.

However, Loos told the Rode property conference near Stellenbosch that the rise in interest rates was believed to be close to its peak and economic growth was expected to pick up next year. More…

SA retail trade expectations mixed

By Evan Pickworth

Johannesburg – While views are somewhat mixed on South Africa’s July retail inflation data, due on Wednesday, a slowdown from the heights reached in the first quarter is generally expected.

“The year-on-year rate of increase in real retail sales probably recovered in July following a surprisingly low 6.4% reading in June, but is likely to have remained below the circa-9.5% growth rates that prevailed in Q1 of the year and in 2006 as a whole – consistent with a moderating underlying trend in consumer demand,” said Citigroup chief economist in South Africa, Jean Mercier. More…