Politics do count...
Category Blog
Politics do count
The Sowetan newspaper reported it as "Cyril's line in the sand". The Business Day referred to it as "...a just innings defeat for Ramaphosa foes". The Citizen labelled it as "...a turning point in the fight against corruption".
Whichever way you look at it, President Cyril Ramaphosa's corruption-focused closing address to the National Executive Committee (NEC) - the highest decision-making body of the ruling ANC party - was a watershed event in South African politics and governance.
It underlined the fact that politics DO count on the home buy/sell front.
Above all, the address left no doubt that the President remains firmly at the helm of our country, and its governing party. And that bodes well for sentiment in what has persistently been a flat-lining, CoronaVirus-clouded, residential property market.
It also coincided with the emergence of two distinctly market-friendly factors for home buyers - prevailing low prices, and reduced interest rates.
None of these points should escape the attention of current would-be home buyers. They are opportunities that seldom knock more than once, particularly for those that are less effected by the steep economic downturn.
Work in progress
Another positive circumstance that would bode well for homes market sentiment is a hard-hitting purge against the country's prevailing perverse culture of unbridled corruption. Unfortunately, this is seemingly still work in progress at this stage of our democracy.
If the country's collective leadership could, and would, stand up and visibly act against the prevailing, nationwide corruption pandemic, it is more than likely that people will follow in its slipstream, thus adding momentum to what could conceivably become a national culture change. The perception that everyone on every corner is corrupt would be diluted.
Unfortunately, it seems that the country's leaders spend more time looking over their shoulders and watching their backs rather than focusing their attention on running the country.
Whichever way you look at it, the homes market is ripe and ready for a turnaround. Hopefully on the back of an inevitable economic rebound in 2021. When it takes hold, and given the buy/sell backlog that has built up under the CoronaVirus cloud - as well as the prolonged lockdowns it imposed on buy/sell activity - residential property may well be on the cusp of a rebound that could herald the start of another market boom.
Unfortunate national culture
However, it is unlikely to take hold, let alone gather momentum, if political leadership fails to show visible intent, as well as action, against corruption. Conversely, if it does grasp the nettle, at least 80 per cent of this unfortunate national culture could well be reversed.
If that happens, the positive impact on sentiment in the homes market would be mind-blowing!
Meanwhile, it bodes well for the country, and for homes market sentiment, that the National Prosecuting Authority (NPA) is reportedly gaining more and more traction, and results, on its corruption investigation activities, while the Zondo Commission continues to deliver revelations that that feed into the NPA.
The bottom line is that, if the country's leadership stands up firmly against corruption, and, more important, is seen to be acting against it - within the ruling party, municipalities, members of Government, and non-party politicians - other South African organisations could well follow suit.
In the process, media exposure on corruption will multiply - to the extent that it could result in a national change in culture.
Author: Ronald Ennik
