R500 billion helps national sentiment and the homes market
Category Blog
Uncertainty is the nemesis of positive sentiment. The president's surprisingly large Covid-19 package has given the country hope that the 'tsunami' approaching on the horizon might subside to a 'large tidal wave'. This is an uptick in general sentiment. Which in turn will encourage those in the residential property market, who have the appetite, and have the means, to transact.
Cloud-cover inevitably makes way for sunshine at some stage. And that's a realization we should hold onto. The property market has always bounced back. It's an essential service! Recently a respected 'virus pandemic historian' showed how humanity has responded with 'global amnesia' after every previous pandemic had subsided. Let's expect the safest aspects of normality will return.
The R500 billion Codvit-19 package is not only a bold and swiftly-taken step that will dilute the negative psyche that has taken hold in our country and the property market. It is also a courageous act of leadership by a President who has shown stature and gravitas in attending to the needs of those most vulnerable to the onslaught.
So much so, that the World Health Organisation has praised South Africa's public health response to the problem. It seems that "Ramaphoria" gaining traction again quite nicely.
A threat to livelihoods
It is in bad times, such as our country now faces, that people focus most sharply on their livelihoods and the threats they face. And the residential property market is in the mix, as so many people will need access to their capital. This period could certainly reflect well on the Ramaphosa presidency. And the homes market will like what it sees.
Looking back into recent political history, today's citizens of South Africa should be relieved that, at the climax of the milestone ANC National Conference at NASREC in December 2017, Cyril Ramaphosa was elected to replace Jacob Zuma as President. It was a green-shoot change to a then desolate political landscape. Not least, it was a shot in the arm for sentiment in the then residential property market.
Good Government response
It is a blessing that it has been under the Presidency of Cyril Ramaphosa that South Africa has come to confront the Covid-19 crisis. The manner in which the Government has been responding under his leadership, along with the steady hand of Health Minister Dr Zwelini Mkhize (who has also been bright shining light on the frontline), will undoubtedly help to ensure that our country, and our homes market, will emerge ready to benefit from the inevitable upturn.
Meanwhile, our country no longer has to face the uncertainty of global rating agency downgrades of the country's economy to junk status.
"The darkest hour of the night is just before the dawn"
Author: Ronald Ennik
