Positive house price growth and record number of first time home buyers

The latest statistics from ooba, South Africa’s biggest bond originator, show positive year-on-year price growth of 3.7% reflecting an average purchase price of R913,364.  The average year on year price growth for the first 6 months of 2013 was 4.9% against an average of 6.04% for the 5 months to end of November 2013. This points to stronger price growth trends in the second half of the year.

Healthy price growth was recorded in the First-time Buyers segment, with an average purchase price of R707,428, which is an increase year on year of  6.2%.   54% of ooba’s applications in November were from first-time buyers, almost 3% higher year-on-year, and reflecting the highest percentage level of activity recorded in this market.

“The ideal environment currently exists for first-time buyers to gain a foothold on the property ladder,” says Rhys Dyer, ooba CEO.  He says that the present market conditions are supported by the low interest rate environment which, coupled with subdued property price inflation and improved lending policies, is making it easier for first-time buyers to purchase homes.

Other statistics published by ooba reveal that the Average Approved Bond size, at R792,921, was  7.9% higher year on year,  and the Average Deposit recorded was 13.2% of the purchase price.  “We advise potential buyers to save for a deposit, as these loans achieve higher approval rates and better terms”, says Dyer.

The Initial Decline Ratio at 47.4% was up very slightly year on year,  while the Ratio of Applications Declined by One Lender, Granted by another has increased by 2.8% year on year to 27.2%.  Dyer says these figures highlight the need for consumers to shop around. “Homebuyers are assured a higher probability of an approved loan if they apply to more than one bank, a service that bond originators such as ooba provide for free.”

ooba’s Effective Approval Rate of 65.5% for November recorded a year-on-year increase of 0.3% and a month-on-month increase of 0.1%.  The Trailing Effective Approval Rate, which takes into account applications approved after month end, is 72%, showing that ooba is obtaining approval for more than seven out of every 10 home loan applications it receives.

“While the lending environment is improving, first time buyers and all buyers alike can benefit enormously from being pre-qualified for finance before putting in an offer on a property,” says Dyer.  ooba’s expanded prequalification service, called oobaqualified  provides buyers with a network of highly skilled pre-qualification experts located around the country who will assist buyers to access their credit report, assess their credit standing, calculate their affordability, compile the relevant paperwork and, within 24 hours, provide them with a prequalified loan certificate.

“Being prequalified allows buyers to shop in the right price bracket with the confidence that in all likelihood, their bond will be approved,” says Dyer. “It makes sense for any prospective home buyer to get oobaqualified before they start to look– and this is a free service.” 

Full oobarometer analysis:






Change yr on yr

(Nov 13 vs Nov 12)



Change month

on month

(Nov 13 to Oct 13)

Avg purchase price






Avg purchase price

of  first time buyer






Avg approved bond size






Avg deposit (as % of purchase price)









Avg age of applicant



No Change


No Change

Avg initial decline ratio

(first bank decline)






Ratio of applications declined by one lender but approved by another






Effective approval ratio






  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us