Housing growth figures continue to be encouraging

Although there is talk in what he describes as the ‘less informed’ circles of the South African property market about the possibility of experiencing a re-adjusting bubble burst in this market, this is so unlikely as to be almost not worth considering, says Mike van Alphen, National Manager of the Rawson Property Group’s bond origination division, Rawson Finance.

“Perhaps the most significant of the data released recently,” said van Alphen, “is these figures related to ‘real’ (i.e. allowing for inflation) price growth.  The Absa March Home Loans Review shows that in January this year, year-on-year real growth improved by 4,3%, its highest level since mid-2013. This, say the Absa analysts, reflects the slowing down in year-on-year inflation (to 4,4%), which in turn was caused by declining food price increases and the – regrettably probably temporary – lower fuel prices.”

Although 4,3% real growth may not be achievable in the second half of 2015, said van Alphen, housing price growth is set to remain at around these levels.  This means that nominal (i.e. allowing for inflation) house price growth will remain close to the 8,4% year-on-year figure reported in February for middle segment homes.

“The current nominal growth does represent a slight decline since late last year,” said van Alphen, “but to me it appears to be an exceptionally good performance in an economy which in 2014 achieved only a 1,4% growth rate.  Housing, as one of our Rawson spokespeople said recently, continues to plough its own furrow and to remain one of the safest and soundest of all the asset classes available to the man-on-the-street investor.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us