Latest Posts

New cannabis bill could see construction taking the high road

The proposed amendments to the Cannabis for Private Purposes bill that seeks to further decriminalise cannabis usage and legalise South…

Read More..

Luxury vs ultra-luxury – What’s the difference?

BESPOKE LIFESTYLE: There are a number of key factors that distinguish ultra-luxury homes form the rest, not least that they’re…

Read More..

Creating sustainable growth and reducing poverty through structural transformation

Urban development domains ACRC’s analytical framework uses the concept of urban development domains to transcend both sectoral and traditional systems-based…

Read More..

A root cause of flooding in Accra: developers clogging up the city’s wetlands

Christopher Gordon, University of Ghana Ghana has six designated Ramsar sites. These are wetlands designated under the criteria of the…

Read More..

Nigerian property crime could be reduced if neighbourhoods were better designed

Adewumi Badiora, Olabisi Onabanjo University Nigeria has a very high crime rate. The Global Peace Index ranked it the world’s…

Read More..

Inner cities are growth engines attracting young homebuyers

Inner city living is boosting the city residential property market and driving urban rejuvenation Inner cities. Love them or hate…

Read More..

Kenya’s push for affordable housing is creating opportunities despite barriers

Raphael M. Kieti, University of Nairobi; Robert W. Rukwaro, University of Nairobi, and Washington H.A. Olima, University of Nairobi In…

Read More..

Heron IVC: Walking the green talk

Waterfall is closing the loop on waste Waterfall prioritises sustainability and responsible environmental stewardship as a strategic imperative, keeping the…

Read More..

10th Sep 2022

Architect Africa Online

Africa's Leading Architecture Aggregator

Covid-19 disruptions: buyers continue to cash in

Despite the ongoing upheaval caused by the Covid-19 pandemic, coupled with civil unrest in KwaZulu-Natal and Gauteng earlier this year, statistics for the third quarter of 2021 (Q3 21) from ooba, a leading home loan comparison service, show that lending conditions remain advantageous to home loan applicants. The pandemic has drastically changed consumer behaviour as well as banking trends, resulting in a surprising boom in the local residential property market over the past 12 months, says Rhys Dyer, CEO of ooba.


He says home buying and mortgage lending have remained relatively immune to the pandemic. “Despite slower growth in property prices for this quarter, we expect residential property prices to continue increasing.” The ooba statistics show a retreat from previous double-digit to single-digit property price growth with the average purchase price increasing by 5.4% year on year compared to the third quarter of 2020 (Q3 20). “The local banking industry appears to be optimistic about the future of the South African residential property market,” he says. “The current lending landscape remains competitive, which is evidenced in the softening of their deposit requirements and approvals at interest rates on average below prime.” The usual deposit as a percentage of the purchase price declined by 10,5% year on year.

Rhys Dyer, CEO of ooba


Of all home loan applications received by ooba in Q3 21, 50% were from first-time homebuyers – almost 63% of ooba’s first-time buyer applications in Q3 21 were for zero-deposit bonds compared to 60% in Q3 20. “Zero-deposit bonds are sought after among first-time homebuyers. Our approval rate for 100% bond applications this quarter was 81.5%, up by 1.4% on the third quarter of 2020,” he says.


With the lower cost of borrowing boosting affordability, ooba’s statistics show growth in homebuyers buying alone as opposed to co-buying. This segment of homebuyers has grown to close to 60% of ooba’s applications since the beginning of the pandemic. Female homebuyers currently dominate this single-owner segment, constituting more than 51% of applications. Since April last year, applications from women buying on their own increased by 4%. “Purchasers buying properties as buy-to-let investments increased to 7% of applications in the third quarter, compared to 5% in the third quarter of 2020. Current lending and buying conditions are perfect for property investors,” Dyer says.

The post Buyers continue to cash in appeared first on Everything Property.

Syndicated content from Everything Property


If you find this website useful please spread the word.

Follow by Email