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SA house price growth reaches double digits in October

South African house prices rose by 15.1 percent in October compared with the same month last year, independent bond origination company MultiNET said on Tuesday. Photo: Itumeleng English/African News Agency (ANA)

South African house prices rose by 15.1 percent in October compared with the same month last year, independent bond origination company MultiNET said on Tuesday. Photo: Itumeleng English/African News Agency (ANA)

Published Nov 17, 2020

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JOHANNESBURG - South African house prices rose by 15.1 percent in October compared with the same month last year, independent bond origination company MultiNET said on Tuesday.

Prices were driven up by demand as consumers took advantage of low interest rates, with submissions for home loans surging over 50 percent, MultiNET chief executive officer Shaun Rademeyer said.

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The South African Reserve Bank has slashed interest rates by a cumulative 300 basis points this year to ease pressure on an economy brought to its knees by the Covid-19 pandemic, although it kept them unchanged at its last monetary policy meeting in September.

With commercial banks also offering payment holidays to many consumers financially struggling after a months-long national lockdown in response to the health crisis, housing stocks have become low for real estate agents while some homeowners are opting to hold off selling their properties, MultiNET said.

Rademeyer however said property price growth was likely to slow in 2021 as more banks started easing the payment holidays and a steady flow of houses became available in the market.

Developers had seen the trend and were urgently trying to get new projects launched, meaning that as more stock became available, house prices would become more competitive.

“We will continue to see growth in the housing market in the first 6 months whilst consumers take advantage of the low interest rates,” said MultiNET.

African News Agency

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