select
|

SA property market ‘still among the leaders’

According to the annual ‘Home Truths’ article recently published by The Economist, the rate of house price growth in SA is currently the third highest in the developed world at an average of 5%, with only Hong Kong (21,8%) and Austria (10,1%) doing better.

“This may come as something of a surprise to those who have wondered just how much longer it will be before local property prices return to real-term growth, but The Economist’s figures also show that over the past five years (to end-2012), only six countries have experienced higher house price growth rates than SA,” notes Rudi Botha, CEO of BetterBond, SA’s biggest mortgage originator

“The countries that are ahead of SA are Austria, Canada, China, Hong Kong, Singapore and Switzerland – and several of these, even China, are now on a slower growth track than SA.”

The Economist points out that in Canada, for example, the annual rate of growth in the fourth quarter of last year was only 3,3%, compared with 7,1% a year earlier.

“Meanwhile, although SA prices have only grown by 12,2% over the past five years, the local market still looks pretty good against the US, where prices have shown a 20,5% decline, not to mention Spain (-24,3%) and Ireland, where an utterly depressed market has seen property prices literally halve in the past five years.”

Writing in the latest BetterBond newsletter, Botha says there is also more good news for the SA market, in the latest Absa and FNB property publications.

“The former shows that year-on-year housing price growth is now moving ahead of inflation in several areas (Port Elizabeth, East London and the KZN South Coast, for example) and in specific sectors in other areas, such as medium-sized housing in Mpumalanga, Limpopo and the Tshwane metro, and smaller housing in the North West and Northern Cape. Large homes in the Western Cape are also showing inflation-beating price gains.

“And according to FNB’s latest survey of estate agents, the average listing time of properties declined to between 15 and 16 weeks, compared to almost 18 weeks in the first half of 2012. In addition, while 85% of property sellers still have to drop their price in order to sell, this drop has moderated from an average of 13% of asking price in 2011 to 10%.”

Best of all, he says, the FNB survey showed that 13% of agents now regard stock constraints as a limiting factor when considering near-term market prospects. “This is double the 6,5% of agents who cited stock constraints in 2011 and indicates a broadly improved balance between supply and demand in the market which should, in turn, underpin continued house price growth.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    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