With some global housing “bubble talk” starting up again, where does South Africa's market stand?

(By Kathy East)
During October, Dallas Federal Reserve President Richard Fisher expressed his concerns that another housing “bubble” was developing in the United States, while similar concerns have recently been expressed in other countries like the UK as well.

John Loos of FNB Household and Property Sector Strategist states: Given that South Africa is a very open economy, and strongly tracks the global economic cycle, it is important not to ignore such global signs, and to ask the question as to whether such a situation is possibly developing here at home too. Fortunately, we cannot see signs of “over-exuberant” behaviour in the residential market as yet.
“All South African property owners need to be fully aware of the economic situation, however with our strict banking policies, we are better protected than many other countries. We have also not seen the same kind of house price increases as seen in other parts of the world and our prices remain conservatively priced in comparison with international prices” says Craig Hutchison, CEO of Engel & Völkers Southern Africa.  Home owners are warned that they should restrict their housekeeping expenditure and rather pay any spare cash onto their mortgages, especially over this festive season.
In South Africa, the property market appears very stable and balanced and so, with our current low interest rates, buyers should be benefiting and exploiting this situation, as it makes financial sense now to buy either a first, or second property.  Home purchasers can be confident that to purchase property now with our current interest rates, will be an asset to their portfolio.
“We all have a good idea of the maximum amount that we can afford to spend monthly on a bond, and this fact, together with the right property, will let you enjoy your new home without undue financial stress.  Just be cautious of being extravagant and stay within a budget. Our own in-house financial services team will assist you in establishing the maximum bond that the bank will grant you, so that you can plan for 2014” added Sandy Reddy, Head of EV Finance.
As quoted by FNB, the year-on-year house price growth, although relatively low, is positive news for both the purchaser and the seller.  Contact one of our Engel & Völkers offices around the country and they will gladly provide you with professional service and assistance with your decision-making.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 25 Apr 2018
      Whether you are a seasoned seller or new to the game, putting your home on the market is an exciting moment. To ensure you get the best possible outcome these 8 value adding additions to your home is worth the effort.
    • 25 Apr 2018
      After four years of unprecedented growth fuelled by semigration, the Southern suburbs market faced a number of challenges in 2017, including dwindling affordability and a marked slowing in house price growth with many sellers forced to lower their prices in order to secure a sale.
    • 25 Apr 2018
      Mall of Africa, is celebrating its second year of sensational success. This splendid super-regional shopping centre first opened on 28 April 2016, and has grown in popularity, performance and profile since then.
    • 25 Apr 2018
      While the role of trustee in a sectional title scheme is a voluntary and unpaid position, it is one that comes with huge responsibility. Trustees have a fiduciary duty towards their scheme, says Chinelle Hewit, Operations Manager at sectional title finance company Propell.
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us