Residential property prices are likely to continue to drift sideways this year, impacted by poor economic growth, according to bond originator, ooba

South Africans are cautious about the effect of the World Cup on property prices, with more than 80% of respondents to a poll saying they do not expect an increase in prices as a result of the soccer tournament.

This represents the fifth consecutive month that the oobarometer has shown a rise in house prices and it is the biggest increase within that period.

South Africa’s biggest bond origination company, ooba, has seen a 55% increase in the value of approved loans from April to September this year, with a 21% surge from August to September alone

“The September oobarometer continues to reflect an improvement in year-on-year house prices,” says Saul Geffen, chief executive of ooba. “This is the fourth consecutive month that the oobarometer has reported rising house prices and is clear evidence that the market is on the road to recovery.”

The July oobarometer price index recorded a slight nominal increase in year-on-year house prices of 1%

The June oobarometer price index recorded a nominal increase in year-on-year house prices of 1.2%

“The March oobarometer continues to reflect the downward pressure on house prices and we expect continued pressure before some slight recovery toward the end of the year,” says Saul Geffen, chief executive of ooba (formerly MortgageSA).

The latest oobarometer shows that annual house prices fell a further 0.7% in February this year.

An online survey by ooba to assess South African property owners’ attitude towards the c reveals that 50% feel that the property market will continue its downward trend until the end of this year