The South African residential property market sector is in a rut but is poised for a gradual recovery.
“In Q1 ‘24, the volume of home loan applications processed were down by 9% from Q1 ‘23 and down 25% from Q1 ‘22.” Both segments saw growth of 4.8% in the last quarter, with the current national average purchase price setting at R1,479,327, while for first-time homebuyers this figure sits at R1,171,798.
Moreover, despite economic fluctuations, bank approval rates remain steady at 83.4% of applications processed in Q1 ’24 The country’s lenders are also further easing pressure on homebuyers by offering attractive discounts to prime, with the average weighted rate of concession now at -0.52% – 7 basis points cheaper than Q1 ’23, which is a welcome relief amid high interest rates.