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RODE REVIEW MAY 2019
Welcome to the May issue of the Rode Review. Feel free to contact us for more information regarding any of the articles and/or special offers below.

Happy reading!
Kobus Lamprecht

RODE ARTICLES
The drivers of house prices
The house market is not a global market like commodity markets. Thus, if house prices in Cape Town are cheap relative to Melbourne, potential buyers of houses in Melbourne do not flock to Cape Town, thereby pushing up prices in Cape Town. Put differently, fixed properties – with the emphasis on ‘fixed’ – are not globally tradeable or transportable like crude. Because one cannot live in Cape Town and commute daily to Melbourne, prices in Cape Town will not eventually – through arbitrage – equate those in Melbourne. But one can buy Saudi-Arabian crude (a transportable commodity) and deliver it in South Africa.
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