select
|

ooba’s October Results Show Continued Growth in Property Prices

October property statistics released by ooba, South Africa’s largest bond originator, show an increase in residential property prices, despite current weak economic growth.

ooba’s Average Purchase Price rose by 7.6% year-on-year price to R1,024,953 in comparison to the price growth of 5.7% recorded in the third quarter of 2015. First-time Buyers’ Purchase Price showed a milder year-on-year increase of 3.4% to R 787,789. 

“The moderate acceleration in house price growth is primarily due to demand for residential property exceeding supply, as a result of stock constraints.  However, home buyers are under increased financial duress which is evident by the 2.7% drop in Approval Rates and the higher percentage of applications that ooba is receiving for 100% bond finance,” says Rhys Dyer, ooba CEO.

First-time Buyers continue to drive the market, with 54% of all ooba’s applications received in October from this segment. “As this segment of home buyers generally do not have access to deposits, increased First-time Buyer activity accounts for ooba’s statistics showing a 2% year-on-year increased demand for 100% bonds,” adds Dyer.

Despite lower approval rates, lenders are continuing to compete for the home loans market, evidenced by the 18 basis point year on year improvement in the Average Interest Rate recorded in October at prime plus 0.28% compared to prime plus 0.46% a year ago.

Another emerging trend is a slight resurgence in activity in the buy-to-let market, constituting 5% of all applications received by ooba in October, up 2% from the previous year.

“Economic pressure on prospective property buyers affects the affordability of housing as well as the ability to obtain a bond.  By using ooba’s bond origination service, prospective buyers can secure the most favourable home loan deal. Our free prequalification service ensures that prospective buyers are shopping in an affordable price bracket. This allows home buyers to focus on finding their dream home, while we find the money,” concludes Dyer.




  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 15 Jun 2018
      The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
    • 15 Jun 2018
      According to data recently released by FNB, the average age of a South African home buyer has increased from 38 to 44 this year. In an attempt to help first-time buyers enter the market sooner, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, walks us through the steps of saving for your first home.
    • 15 Jun 2018
      Putting your house on the market can be a stressful process. There are so many decisions to make that will impact how quickly your house is sold and for how much you can sell it for. It’s a serious money game where you can’t afford to make the wrong decision.
    • 14 Jun 2018
      The word tourist describes someone who is visiting South Africa for a limited time and is probably not going to buy a property here – so why is the tourism industry so important to the real estate sector?
    • 14 Jun 2018
      Serengeti Estates has entrenched its status as one of Johannesburg’s most desirable addresses for a spectrum of homeowners with its launch of The Signature Residences, a new cluster village.
    • 14 Jun 2018
      Keen interest shown at an international event in Hamburg last month has revealed that German investors have a surprisingly healthy appetite for South African real estate, especially those in the market for retirement properties.
    • 13 Jun 2018
      Well located urban properties, from that convenient city pad to the family townhouse or the coveted buy-to-let property can provide buyers with great investment returns over the long term. This is according to Fine & Country which have a number of offices in Johannesburg specialising in the sale of urban properties.
    • 13 Jun 2018
      A R200 million 51-unit luxury apartment project on a vacant lot at 169 Main Road Green Point places the capstone on the radical transformation of the stretch between de Waterkant and Glengariff Road.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK