Latest news with #SamuelSeeff
IOL News
28-05-2025
- Business
- IOL News
Property group urges SARB to cut interest rates for economic growth and job creation
Lower interest rates will reduce the cost of financing homes, thus enabling a higher affordability at a given monthly financing payment. Image: Simphiwe Mbokazi / Independent Newspapers. A South African property group has reiterated its call for the South African Reserve Bank (SARB) to step in with an interest rate cut as a vital stimulus for economic growth and job creation. National year-on-year house price inflation has maintained a modest pace of 2.8%, according to the latest figures from Lightstone's Property Index. This steady, albeit sluggish, trend is echoed in the RE/MAX National Housing Report for the first quarter of this year, which reveals a 2.1% increase in average house prices compared to the same period in 2024. With Consumer Price Inflation (CPI) sitting close by at 2.7% as of March, these figures paint a nuanced picture of South Africa's residential property landscape. As the economy stands at a pivotal juncture, a robust cut of at least 25 to 50 basis points is not just desirable but a critical imperative, according to Samuel Seeff, chairman of the Seeff Property Group. He said the country simply can no longer bear keeping the interest rate so high for so long. As it is, he said the overly cautious approach by the bank has missed at least two opportunities to provide relief to consumers and the economy. 'The pressing challenge of unemployment simply can no longer wait. A decisive move by the SARB now would signal a commitment to revitalising economic activity. It would also provide much-needed support to businesses and consumers, and facilitate an environment conducive to investment and job creation,' Seeff said. The property group said the case for such monetary easing is strongly supported by the current inflation landscape. It said despite the recent benign increase in inflation to 2.8%, it remains comfortably below the Reserve Bank's 3-6% target range. Despite headwinds out of Washington, it said the rand has also strengthened to below R18 to the US dollar. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading At the time of the open yesterday, the USDZAR traded at R17.88, according to Reezwana Sumad, research analyst at Nedbank CIB. 'The USDZAR traded steadily weaker over the course of the session to close the session at R17.92. Since the close last night, it has traded incrementally weaker, and the USDZAR is trading at R17.98 currently this morning. "The major currency pairs have also lost ground to the USD, with the EURUSD trading at 1,1305 this morning and the GBPUSD at 1,3470. Possible trading range for the USDZAR today(Wednesday) is R17,80 to R18.15,' Sumad said. She added that the local markets have traded cautiously over the week thus far and are likely to remain so ahead of the SARB's MPC. On the international front, she said headlines from the US continue to provide the catalyst for market activity. Seeff said the prevailing remarkably low inflation level indicated that demand-side pressures are relatively subdued and the risks of igniting an inflationary spiral through a rate cut are minimal at this stage. He said the stability of the currency provides further mitigation, thus providing a valuable window for the SARB to implement a more accommodative monetary policy stance that directly benefits the domestic economy. According to data analysed by Lightstone, which evaluated property bought by a natural person and where the transaction was for a single property, young homeowners are entering the market later than they did in the past, and are opting for bonded, secure living. In 2024, people aged between 20-35 (youth) accounted for 30% of residential property purchases, down from 36% in 2019 and 41% in 2014, with tough economic conditions and changing lifestyles cited as the likely reasons behind the shift. While youth accounted for 30% (52 500) of residential property transactions in 2024, it was the second largest group behind the Settled category (36-50) at 43% (76 000). The Mature category (51-64) (38 000) accounted for 21%, while the Pension category (65 and older) accounted for 6% (10 000). While the recent rate cuts have provided some relief, Seeff said the benefits have now been eroded by keeping the interest rate at least 100 basis points above the pre-Covid rate. He said time is ticking and the country simply can no longer wait. Seeff said there is now a golden opportunity for the bank to act boldly within the available monetary policy space to address the urgent needs of economic recovery and expansion without jeopardising its price stability mandate. A rate cut would inject much-needed momentum into the economy by lowering borrowing costs for businesses and stimulating investment while adding more money into the pockets of consumers to spend in the economy, he said. The property group said while a 25bps cut would be most welcome, they urged the Bank to provide a more robust cut of at least 50bps as an immediate injection of economic confidence to kickstart the economy. 'Naturally, the property market, which currently lags the pre-Covid volumes, will also benefit from a more pronounced rate cut. Aside from enabling more first-time property buyers to get into the market, it is an important economic contributor with a significant economic multiplier benefit,' Seeff said. Independent Media Property
The South African
27-05-2025
- Business
- The South African
Buy or rent? Here's what the EXPERTS suggest
With many South Africans weighing up the pros and cons of renting versus buying property, experts say owning your own home remains the smarter long-term financial decision – especially in the current market. According to Samuel Seeff, chairman of the Seeff Property Group, purchasing a property allows individuals to build wealth and security by investing in an appreciating asset, rather than paying rent with no return. 'Each mortgage payment contributes to building equity in your home,' says Seeff. 'In contrast, rent is simply an expense with no long-term benefit.' As the outstanding loan decreases and property values increase over time, homeowners gain a growing asset that can be leveraged to achieve future financial goals. This makes buying a home both a savings mechanism and a long-term investment. RELATED | Vacant land in Clifton sells for R170 million Beyond the financial advantages, Seeff highlights the stability of homeownership. Owners are shielded from uncertainties such as rent hikes, non-renewal of leases, or landlords selling the property. 'You also gain the flexibility to renovate or upgrade your home to suit your lifestyle – something renters often can't do,' he adds. 'This not only improves your quality of life but also enhances the value of your property.' Property remains a solid asset class and a reliable hedge against inflation, Seeff explains. While rental prices tend to rise year on year, home loan repayments can remain relatively stable over time – subject to interest rate fluctuations. By making extra payments, using bonuses, or investing spare funds into a home loan, homeowners can reduce their debt faster or build equity more quickly. A major advantage in South Africa is the accessibility of home loans. Many banks continue to offer 100% financing, sometimes even including transaction costs, making it easier for first-time buyers to enter the market. In fact, a recent survey revealed that 46.5% of home loans granted in recent months were for first-time buyers, highlighting ongoing demand and opportunity in the sector. Seeff encourages financially secure individuals to act now, noting that property prices are continuing to appreciate. 'The longer you wait, the more you're likely to pay,' he warns. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
18-05-2025
- Business
- IOL News
Point of view: the case for lower interest rates
South Africa faces a dire jobs crisis, with unemployment soaring to 32.9%. This article argues for a 50 basis point cut in interest rates to stimulate economic growth, create jobs, and alleviate the financial burden on households. Time to Back South Africans: Cut Interest Rates and Prioritise Jobs South Africa is facing a jobs crisis, and it's getting worse. The latest employment figures are hard to stomach: 237,000 jobs lost in the first quarter of 2025, pushing the official unemployment rate to a staggering 32.9%. That's 8.2 million people without work. If we include those who've given up looking for work, that figure balloons to 12.7 million, roughly 43.1% of the workforce. These aren't just stats. Behind each number is a household battling to survive, young people losing hope, and communities on the brink. Unemployment at this scale isn't just an economic issue, it's a social crisis with far-reaching consequences. It's no surprise, then, that poverty continues to tighten its grip. Over half of South Africans, around 55%, live below the poverty line, according to recent data from Stats SA. Crime has ticked up, with SAPS reporting a 6.7% rise in violent incidents like robbery and murder last year. Mental health is under pressure too, as clinics report growing cases of depression and anxiety driven by financial stress. Among the youth, almost 60% are unemployed, and the frustration is palpable. The risk of social unrest is not abstract, it's real, and it's growing. This is the reality our economy is contending with. Consumer spending is shrinking. Small businesses are struggling. And economic growth has slowed to a crawl, just 1% expected this year, after barely managing 0.6% in 2024. So, what can be done? Samuel Seeff, chair of the Seeff Property Group, has called on the South African Reserve Bank's Monetary Policy Committee (MPC) to cut interest rates by at least 50 basis points. He's not wrong. The economy needs a boost, and monetary policy can play a pivotal role. Inflation is well under control, sitting at 2.7% in March, comfortably below the Bank's target range. Yet interest rates remain stubbornly high, even above pre-Covid levels. In this context, high interest rates are doing more harm than good. They're dampening economic activity, holding back investment, and making it harder for ordinary South Africans to make ends meet. Bond repayments are higher. Credit is more expensive. The property market remains subdued, with FNB noting sales volumes are still lagging behind pre-pandemic levels. When consumers have less to spend, small businesses, from spaza shops to family-run restaurants, feel the pinch. A rate cut, on the other hand, could help unlock growth. It would reduce borrowing costs, giving households some breathing room. Consumer spending, which makes up around 60% of our GDP, could recover. Small and medium-sized businesses could access more affordable finance to invest and hire. The property sector could bounce back, historical trends show that a 50 basis point cut could lift property transactions by 10-15%. This would benefit construction too, a sector that absorbs large numbers of low-skilled workers. Crucially, such a move would signal confidence and commitment to economic recovery, both to local investors and international partners. It would show that we're serious about growth, job creation, and improving living standards. Other central banks are already responding to similar global conditions. The Bank of England and the European Central Bank have trimmed rates by 25 basis points. The US Federal Reserve is holding steady despite global uncertainties. South Africa's real interest rate, our rate minus inflation, is among the highest in the world. It's not just uncompetitive, it's counterproductive. The Reserve Bank's continued caution no longer seems justified. Inflation is in check, and the global outlook is improving. Now is the time for decisive action. If the MPC fails to act, the costs will mount. We could see unemployment rise by the end of the year. Household debt is already high, sitting at around 62% of income, and could worsen. Inequality, one of our most entrenched challenges, will deepen. And faith in the country's economic future will continue to erode. A 50 basis point rate cut isn't reckless, it's necessary. It's a step toward giving South Africans a fair shot at recovery, dignity, and hope. It's time to act, before the damage becomes irreversible. * Maleke is the editor of Personal Finance. PERSONAL FINANCE
The Citizen
16-05-2025
- Business
- The Citizen
Unemployment, low growth crises demand bold action
Given the alarming increase in unemployment announced this week, Samuel Seeff, chairperson of the Seeff Property Group has issued a strong call to the South African Reserve Bank's Monetary Policy Committee (MPC) to implement a significant interest rate cut of at least 50bps at its upcoming meeting. The latest unemployment figures paint a stark reality as another 237,000 South Africans lost their jobs in the first quarter with unemployment now at 32.9% (up from 31.9%). Some 8.2 million people are now unemployed, and on the expanded definition it stands at 12.7 million (43.1%). This is further exacerbated by the IMF and Moody's recently downgrading South Africa's economic growth outlook for the year to around 1% at best, after growing at just 0.6% last year. The continued economic stagnation and rising unemployment is simply untenable, says Seeff. The risks to the stability of South Africa far outweigh the Reserve Bank's overly cautious approach to inflation concerns, especially since inflation has trended around the bottom of the Reserve Bank's target range since late last year, falling to just 2.7% for March. This is below the target range. The interest rate is still 100-basis points higher compared to the pre-Covid rate while the economy is stuttering and shedding jobs at an alarming rate. It should be noted too that the gap between the interest rate and inflation in South Africa is among the highest in the world, stifling growth. Seeff says the prolonged period of high interest rates has demonstrably hampered economic growth and placed significant strain on the economy and property market. The recent marginal rate cuts have now proven insufficient to stimulate meaningful recovery within the property market with FNB recently reporting that sales volumes are still below pre-pandemic levels. We have recently seen the Bank of England and the European Central Banks cut their rates by 25bps. While the US Fed kept its rates unchanged, that was expected given the impact of the US-China trade war. On this front too, progress has been made with recent meetings between the US and China and a temporary tariff relief deal. That means the Bank's primary justification for maintaining high interest rates have now diminished, says Seeff. Inflation is below the target range, the global economy is settling, VAT has been scrapped, and after some volatility, the Rand has stabilised. There is therefore no reason for the Bank not to step in with a meaningful rate cut of at least 50bps. South Africa can no longer wait, the time for action is now. Issued by Gina Meintjes
IOL News
15-05-2025
- Business
- IOL News
Urgent call for 50bps interest rate cut by SARB: Impact on South Africa's property market
'Some 8.2 million people are now unemployed, and on the expanded definition it stands at 12.7 million (43.1%),' Seeff said. Samuel Seeff, chairman of the Seeff Property Group, has issued this call following the latest unemployment figures, which he said painted a stark reality as another 237 000 South Africans lost their jobs in the first quarter, with unemployment now at 32.9% (up from 31.9%). There are strong calls for the South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) to implement a significant interest rate cut of at least 50bps at its upcoming meeting. The property group said this is further exacerbated by the IMF and Moody's recently downgrading South Africa's economic growth outlook for the year to around 1% at best, after growing at just 0.6% last year. The continued economic stagnation and rising unemployment are simply untenable, says Seeff. It said the risks to the stability of South Africa far outweigh the Reserve Bank's overly cautious approach to inflation concerns, especially since inflation has trended around the bottom of the Reserve Bank's target range since late last year, falling to just 2.7% for March. It said this is below the target range. The real estate company said the interest rate is still 100-basis points higher compared to the pre-Covid rate while the economy is stuttering and shedding jobs at an alarming rate. It should be noted too that the gap between the interest rate and inflation in South Africa is among the highest in the world, stifling growth, it added. Seeff says the prolonged period of high interest rates has demonstrably hampered economic growth and placed significant strain on the economy and property market. 'The recent marginal rate cuts have now proven insufficient to stimulate meaningful recovery within the property market, with FNB recently reporting that sales volumes are still below pre-pandemic levels. 'We have recently seen the Bank of England and the European Central Bank cut their rates by 25bps. While the US Fed kept its rates unchanged, that was expected given the impact of the US-China trade war. On this front too, progress has been made with recent meetings between the US and China and a temporary tariff relief deal.' Seeff said that means the bank's primary justification for maintaining high interest rates has now diminished. He said inflation is below the target range, the global economy is settling, VAT has been scrapped, and after some volatility, the rand has stabilised. 'There is therefore no reason for the bank not to step in with a meaningful rate cut of at least 50bps. South Africa can no longer wait; the time for action is now,' Seeff said.
