Perceptions about the property market improved in the third quarter.

Building activity in the South African market for new private sector-financed housing remained under pressure in both the planning and construction phases in the first eight months of 2017, based on data released by Statistics South Africa.  

South Africa is unlikely to have growth above 1.5% in the next two years, the Reserve Bank said on Wednesday.

Outstanding credit balances in the South African household sector increased by 3,4% year-on-year (y/y) to R1 520,2 billion in the period January to August  2017.

Property, whether directly held or listed, was the darling of South African investors over the past decade and longer.

Building activity in the South African market for new private sector-financed housing showed some marginal improvement on a year-on-year basis in both the planning and construction phases in the first seven months of 2017, based on data released by Statistics South Africa.

SARB leaves Repo Rate unchanged after only 1 x 25 basis point cut in the current cutting cycle. Weak consumer confidence likely to remain, and shift to a more cautious consumer expected to continue says John Loos, Household and Property Sector Strategist.

Examining recent years’ of improvement in both the Household Sector Debt-to-Disposable Income Ratio (decline) as well as the Household Sector Net Savings Rate (rise), it would appear that weak consumer confidence levels in a stagnant economy are encouraging households as a collective towards a more cautious financial approach.

Second quarter statistics (Q2 2017) from ooba, South Africa’s leading bond originator, show nominal positive growth year-on-year of 3.6% in the Average House Purchase Price.

Low growth in household credit and mortgage balances in the first half of 2017, with home loan repayments showing homeowner financial strain.