Property Sector Records Conservative Double Digit Stats For 2015
May 2015 Stats Reveal Reasonable Growth Increase
The recently released property stats released by Ooba, South Africa’s largest bond originator have cloaked in the second double-digit growth rate for the year. The chief executive officer of Ooba comments, “The ooba barometer recordings for the average purchase price rate have shown an increase from 13. 3% to R 1,072, 615. The first time buyers rate has improved from 8.6% to a 796 261 increase on a year on year growth in the house price growth” he noted.
A local property expert said, “Although South Africa faces economic challenges of load shedding, poor governance, time-consuming functioning of the parliament which results in late legislation approval, the property sector still continues to thrive and achieve, small yet notable rate increments. “The economy is obviously growing at a slower pace compared to a few years ago however this has not yet caused a halt to the growth of the property industry.”
Dyer explained that at least three-quarters of the home loans they process get approvedl, “In May Ooba achieved a prime of 0.34 % in the average interest rate. On a year on year basis approval rates achieved are 2.5%. However when compared to the stats of 2014 the approval rates have decreased by 0.24%. There is competition in the home loan business in the market.”
According to Rhys Dyer, the market has mixed activities of new buyers as well as second-time buyers. In comparison to six months ago, the statistics for first-time buyers has dropped to 51 %. But evaluations conducted between April and May 2015 show that the growth rate is escalating. He also explained that the majority of activities that contributed 96 % in records were of buyers of primary residences, this indicated that fewer people acquire holiday home finances and buying to let schemes.
Rhys Dyer explained that buyers who are prequalified for financial aid were at an advantage when it came to making successful property offers. “Home buyers who use a prequalification service within 24 hours get assessments of their credit cards, required documentation details sorted out and a prequalified loan certificate. Getting this service gives buyers ample time to focus on what is important to them. Finding the dream property they want to purchase. The figures thus far in the property sector are positive.”
