Local property market – 3rd Quarter September 2021

The quarter saw no change in the local repo rate, which remained at an all-time low of 3.5%. However, local market jitters over future potential rate hikes have emerged once again, as investors remain concerned about global inflation and unexpectedly hawkish moves by the US Fed.

The local favourable interest rate environment has been a boon to the local property sector, aiding it in its recovery from previous lows. Whilst the local property market earned +5.9% over the quarter, this sector is still severely depressed as evidenced by its negative medium-term returns of -6.8% annualised over 3 years to September.

The property sector faces a systemic shift in demand amid rising online sales activity, and as more companies permanently adopt a work-from-home approach. As demand requirements for the post-pandemic era become clearer, so too should the outlook for the property sector.