Cape Town – The South African property market continues to show positive growth trends, despite the challenging local economic conditions and subdued business and consumer confidence, according to the latest statistics for April released by South African bond originator ooba.
“We were pleasantly surprised by a 10.3% year-on-year increase in the average purchase price to a high of R1 045 038 in April. This is the first time since May 2010 that the oobarometer has recorded double-digit year-on-year price growth,” said ooba CEO Rhys Dyer on Thursday.
The average purchase price for first-time buyers also rose by 6.2% year-on-year to R788 953. Although first-time buyers continue to make up the majority of the home loan market, ooba’s April data indicates that the percentage of second-time buyers increased year-on-year by almost 3%, which accounts for the higher average purchase price.
ooba’s home loan lending statistics continue to point to positive signs in terms of home loan lender competition, evidenced by the higher approval rates and more competitive rate concessions recorded in April.
The average rate achieved by ooba in April 2015 of prime plus 0.27%, is well down on the average of prime plus 0.58% achieved in April 2014.