Together with the previous cut, this is vital for when the country comes out of the Covid-19 Lockdown and the recovery starts. The two rate cuts provide a saving of about 20% for property buyers and are a significant boost for demand.
The property market will emerge from the Lockdown with a level of pent-up demand, but still mainly in the primary residential market to around R1.5m (up to R3m in some areas).
Above that price level, especially where buyers are not so reliant on mortgage finance, the activity will remain muted.
Growing expectation 20/21 budget to be revised drastically
A large-scale infrastructural investment programme initiated to revive the economy is needed as South Africa faces the economic impact of the COVID-19 pandemic and lockdown.
This should be designed to keep many businesses afloat and to prevent the already high official unemployment rate, rising almost overnight by an anticipated 50%.
The figures and trends previously used as guidelines no longer apply: a total rethink is now recognised as essential, and the government seems to recognise the urgency with which this is required.