Banks ease lending criteria - a boost to property market in 2014

Posted On Tuesday, 07 January 2014 19:34 Published by
Rate this item
(0 votes)

One of the more positive signs of the property market in 2013 is that banks started to ease their lending criteria.

Org GeldenhuysThis is a trend that will offer additional updrafts as the property market claws its way back into more positive territory in 2014, said Org Geldenhuys, managing director of property development and marketing company, Abacus DIVISIONS.

"During 2013 financial institutions marginally relaxed their lending criteria, an ease which is expected to continue during 2014.

"Depending on how the new credit amnesty bill impacts the market, 2014 should see a greater level of loan easing," said Geldenhuys.

During 2013 the percentage of loan application approvals witnessed an increase to over 51%, up from the 26% seen in 2009 during the height of the global economic recession.

"What we are also seeing on the ground is that we have more cash buyers - people and companies who have been sitting on their money during the economic recession.

"Now they are feeling more buoyant and are keen to invest some of this cash.
This bullish sentiment is going to assist with the recovery in the commercial property market - and the residential property market."

Last modified on Wednesday, 08 January 2014 08:35

Most Popular

Scores of subcontractors at risk as yet another principal contractor enters business rescue

Jun 10, 2019
News of yet another principal contractor entering business rescue with tens of millions…

Lifestyle brand to open in Cape Town’s vibrant Longkloof precinct

May 30, 2019
Hilton today announced the signing of a management agreement with Growthpoint Properties,…

Solid Performance By Arrowhead's Core Property Portfolio in Line With Expectations

May 29, 2019
Arrowhead Properties Limited, a proudly South African JSE-listed REIT with a diverse…

How to invest in property without costly and risky direct ownership

Jun 05, 2019
When people want to invest in real estate they usually secure a loan to purchase a…

Investec Australia Property Fund successfully lists on the ASX

May 29, 2019
Investec Australia Property Fund has listed on the Australian Securities Exchange (ASX)…

Please publish modules in offcanvas position.