Affordable housing is set to boom

Private Property South Africa
Cathy Nolan

market

  • *Despite the local property market having been under pressure throughout the first three quarters of this year, it seems there has been a major push across all property levels in the final quarter.

It was reported that middle-segment houses achieved growth of 9.3% in the second quarter and 8.7% in the first quarter.

In real terms, the average price of middle-segment housing rose by 3.2% year-on-year in the third quarter, compared with 2.6% year-on-year in the second quarter.

Here’s the exciting news

Earlier this year we saw the affordable property market shrug off the interest rate increase while luxury homes buckled under the price pressure.

Banks have said that home prices increases are on the rise indicating a turn of events for investors.

The affordable property market has been boosted by these recent events, and has already started improving. We saw October achieve exceptional growth and November maintained the good fortune.

**

Judging on new business and ever-increasing enquiries, December and the first quarter of 2015 have set the stage for a boom in the affordable property market.

First time buyers have evaluated the value of buying an affordable home and avoid excessive bond repayments in turn inspiring investors to take serious note of this-often ignored part of the local market.

This development is the result of ever-rising bond interests, above-inflation increases in building costs, as well as price pinches in household expenses due to rising inflation and high interest rates.

By Mark Brickles of
 RE/MAX Ultra Select

Looking to sell your home?
Advertise your property to millions of interested buyers by listing with Private Property now!
List your home privately

Share:

Found this content useful?

Get the best of Private Property's latest news and advice delivered straight to your inbox each week

Related Articles

Private Property Culture and Careers
Private Property is South Africa’s leading property website, find out more about our culture, teams and working with us.
Val de Vie Estate
Val de Vie Estate, South Africa’s first and only Wine and Polo Estate has a selection of property that will appeal to the discerning home buyer.
Why maintenance should matter for homeowners
Learn more about the importance of maintenance when it comes to home insurance
What happens when a lease is cancelled early
Landlords and tenants need to be aware of their responsibilities when there is an early termination of a lease agreement.
;