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Demand for Residential Property Still Outstrips Supply

November property statistics released by ooba, South Africa’s largest bond originator, show positive year-on-year property trends, despite weak economic conditions and a rising interest rate environment.  
 
Rhys Dyer, ooba CEO says: “Demand for property in certain areas remains resilient, which, when coupled with shortages in supply of properties for sale in many areas, continues to drive prices higher.”
 
The Average Purchase Price of R1,062,476 recorded in November was up 7.1% year-on-year, and, similarly, the ooba First-time Buyers’ Purchase Price showed a year-on-year increase of 7.3% to R805,514.
 
ooba’s latest stats show that a slightly negative year-on-year trend has emerged in the Total Approval Rate, which, at  72.9% is down by 0.6%. “South African consumers are facing increased financial constraints and this is illustrated by marginally lower bank approval rates and increasing demand for 100% bonds. Just over 50% of applications processed in November were from home buyers who had no access to a deposit,” says Dyer.
 
Financial pressure hits the first-time buyer the hardest, which is evident in ooba’s ratio of first-time buyers dropping by almost 2% year-on-year to 54% of all applications received in November.
 
“With one of the highest approval rates in the market, all prospective home buyers, and particularly first-time buyers, are encouraged to use ooba’s bond origination service to successfully secure a home loan during the current difficult economic conditions. ooba also offers a free prequalification service to smooth the way for buyers to find the best bond on the right terms, which allows our customers to concentrate on finding their dream home, while we find the money,” concludes Dyer.




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