Liquidity constraints slows residential market

Sethebe Manake and Victor Senye launch Vantage Property Market Report
Sethebe Manake and Victor Senye launch Vantage Property Market Report

The liquidity constraints currently faced by local financial institutions has slowed down the boom in the residential property market, as financiers become more risk averse in granting loans.

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.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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