The average price to buy a house in South Africa right now.
Category Property Market
South African property tracker OOBA has released its latest oobarometer for the third quarter of 2016, showing that property prices have climbed almost 6% year on year.
However, prices have dropped quarter on quarter, declining 3.3% from Q2.
“When adjusting for inflation, house price growth is struggling to show any real year-on-year growth,” the group said.
The Average Purchase Price of First Time Home Buyers in Q3 increased 7.2% year on year, indicating slightly stronger demand fundamentals for property in the First Time Home Buyer market. However the rate of growth in this market is also slowing.
The average purchase prices of homes in South Africa is at R1 119 817, up from R1 057 176 in 2015. For first-time house-buyers, the average purchase price is at R849 249, compared to R792 180 a year ago.
Average deposits have remained fairly stable, with Q3 2016 reflecting an average deposit of 15.4% of purchase price relative to the 15.9% in Q3 of 2015, the group said. According to OOBA, applications from customers requesting 100% bonds declined from 51% in Q3 2015 to 44% in Q3 2016, signalling that home buyers are increasingly aware of the importance of a deposit to secure a home loan.
First-time home buyers remain the most significant contributor to home loan volumes, making up 53% of all OOBA’s applications in Q3 2016, up by 1% from Q2 2016’s 52%, and unchanged from Q3 2015’s 53%, it said.
The average interest rate relative to prime on all business concluded by OOBA in Q3 2016 was prime plus 0.45%, which is up from prime plus 0.32% in Q3 of 2015.
“This is indicative of increased bank risk and costs of funding,” OOBA said. www.businesstech.co.za
Author: Businesstech
