Comment on the US presidential election outcome from Berry Everitt, CEO of the Chas Everitt International property group, an affiliate of Leading Real Estate Companies of the World©:
>Donald Trump’s surprise victory in the US presidential election is expected to have a mildly positive effect on the SA property market in the short to medium term, says Berry Everitt, CEO of the Chas Everitt International property group.
“The rand is likely to recover from market shock that caused a major overnight drop in the exchange rate against the US dollar, the Pound and the Euro, and the good news for SA consumers and homeowners who are experiencing financial strain at the moment is that we do not expect the election outcome to trigger any local interest rate increases.
“However, we do expect the rand to continue for the next 12 months at least to trade at levels that make South African property an attractive option for international investors buying with those currencies. Indeed, local real estate is becoming increasingly sought-after among high net worth individuals seeking value for money, good returns, and locations that offer a superior lifestyle.
“In addition, investors wary of unexpected events such as the Brexit vote outcome and this US election outcome may well decide to ‘park’ in safe-haven investments such as gold for the next few months and this will further boost the gold price, which is currently (9 November) up about US$25. This will be positive for the SA economy – and property market – as it will help to protect jobs.
“Meanwhile in the longer term, we foresee that Asian currencies will continue to strengthen against the US dollar, and that SA will be a major beneficiary as the middle class in countries such as China, India, and Indonesia expands rapidly and the newly wealthy in those countries join the rush to invest overseas, especially in property.”