- *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