Liquidity constraints slows residential market

Vantage Properties director, Sethebe Manake told Mmegi Business that the sector was most affected by this change because of its reliability on household income and individual affordability. “This is a sector which has a high transaction rate therefore more volatile when changes in the market happen,” she said.

Liquidity has considerably dried up in the banking sector, dropping sharply from 2006 when excess liquid assets made up 45 percent of bank assets to just six percent by the end of 2013.