Despite weak economic fundamentals resulting in negative real house price growth, the banking industry continues to show confidence in South Africa’s property market by further relaxing their lending criteria and approving home loan finance at levels last seen 12 years ago.

2018 was a challenging year for the South African property market, with negative real price growth in the residential property market and slowing market activity.

Third quarter (Q3 18) statistics released by ooba, South Africa’s leading home loan originator, show that year-on-year from Q3 17 to Q3 18, the growth in the Average Purchase Price effectively remained static with a 0.1% increase. This continues the trend of negative real price growth (growth less inflation) in the residential property market.

Banks are showing an increased appetite to lend according to first quarter (Q1 2018) property statistics recently released by ooba, South Africa’s leading home loan originator.

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