Stable interest rate has accommodated growth in Cape Property market

"While we were not anticipating a rise in the interest rate, it is always a relief for the real estate industry when it remains unlowered," says Mike Greeff, CEO of Greeff Properties, an exclusive affiliate of Christie's International Real Estate.

"The fact that the Rand held its ground following the SARB governor's announcement was encouraging, but clearly the sentiment is becoming more hawkish, and we cannot afford to ignore the strong potential for a hike in the last quarter of 2015," says Greeff. "The relative stability in the interest rate has allowed some very healthy growth in Cape Peninsula-based property over the past 18 months to two years," says Greeff. "The stock shortage is prevailing and demand for homes continues to grow, so selling prices are unlikely to drop. In fact, what we're seeing now (particularly in the Southern Suburbs) is that homes that have been on the market for a year to 18 months are finally selling, as there's less resistance among buyers to the asking price," says Greeff.