Land prices stable despite uncertainty over reforms
Investors have been unnerved by one of the signature policy drives of President Cyril Ramaphosa ahead of the 2019 elections
Land prices are “broadly stable” despite uncertainty as the governing ANC moves to change the constitution to expropriate land without compensation, the Banking Association of SA (Basa), said on Thursday. Investors have been unnerved by one of the signature policy drives of President Cyril Ramaphosa ahead of the 2019 elections, which will be a tough test for his party against the backdrop of a recession and signs of rising social discontent. More than two decades after the end of apartheid, most private land in SA remains in the hands of the white minority, making it a potent symbol of wider economic disparities. Basa said in a statement that land prices have “broadly remained stable” with exceptions such as drought-hit areas and lifestyle and game farms, which it said have seen “some sharp declines”. “However, prolonged uncertainty will significantly reduce property values,” it said, while also noting a decrease in farm economic activity. “There has been a slowdown in the number of...
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