Amid rising concerns regarding the global economic outlook, the decision by the Monetary Policy Committee to hold the repo rate steady was not unexpected. We expect that interest rates will remain at relatively low levels for the foreseeable future, providing some measure of certainty to the cost of debt.
Despite the fact that the South African housing market remains muted, it continues to demonstrate resilience. This sector remains tight, impacted mainly by strict bank lending criteria and buyer affordability, with agents' ability to successfully converge selling prices with buyer expectations proving a key factor in current trading conditions.
From a group perspective, we are finding market sentiment more positive than it has been during the recent recession, with a significant improvement in show day attendance and buyer enquiries. For the month of August 2011, the group's unit sales have seen a marked increase of 28% over August 2010, while sales turnover for the same period has also increased by 21% over August last year.
As house prices on average have remained relatively flat, the increase in sales turnover is attributable to the increase in units sold. This in turn is a direct result of several factors, including our increase in market share, with a marked increase in market penetration evident in most major cities and metropoles.
