It’s no secret that confidence in the South African residential property market is at a low point, with growth in the sector being marginal at best.
According to the latest FNB Property Barometer data, all three of Gauteng’s major metros are demonstrating low house price growth, with even higher priced sub-regions favouring the buyer.
However, despite the downturn in Gauteng, Cape Town’s lower-priced regions such as Elsies River, Blue Downs and Macassar have done remarkably well in the first half of 2019, recording an average house price growth of 16.1% year on year.
While higher house price growth is good for sellers, it is not all doom and gloom for buyers in the South African property market.
Bruce Swain, CEO at Leapfrog Property Group, reveals that “purchasing a property has been made significantly more accessible” as a result of ‘generous’ home loans from competing banks.
Bruce adds: “With many banks now extending the threshold for 100% loans to qualified buyers, and in some cases even 105% loans to cover the registration and transfer fees,” banks are ambitiously looking to secure a portion of the lucrative R980 billion mortgage lending market.
In addition to the rise in ‘100% loans’ being approved, there has also been a steady rise in more affordable property on the market, particularly in the region of up to R2.5 million.
Bruce concludes: “It’s a buyer’s market for sure, and if you want to enter the property market, be it as a first-time buyer or to extend your property portfolio, now is a great time to do so,”