Don't Wait Too Long To Buy Property

Growth in Standard Bank’s (smoothed) median house price experienced further easing, contracting by -1% y/y in November from -0.5% y/y in October.

Writing in the latest house price report, Standard Bank Home Loans research analyst Sibusiso Gumbi says house price growth has remained rooted in low single digits throughout 2011 and this is likely to continue in 2012.

Standard Bank Home Loans research analyst Sibusiso Gumbi says house price growth has remained rooted in low single digits throughout 2011 and this is likely to continue in 2012. The bank says household credit remains in low digits and so too does house price growth.

Writing in the latest house price report, Standard Bank Home Loans research analyst Sibusiso Gumbi says house price growth has remained rooted in low single digits throughout 2011 and this is likely to continue in 2012.

“South Africa’s macroeconomic fundamentals indicate a lack of stimuli for the residential property market to return to double-digit year on year price growth.”

Standard Bank believes that the monetary accommodation cycle has ended, with policy tightening likely to commence in the second quarter of 2013.

The repo rate is expected to remain on hold at 5.5 percent next year and inflation will maintain its upward trajectory in 2012 re-entering the target band only, says the bank.

Serious property buyers and tenants are urged to sign the deals now and not wait too long to make a decision on whether to buy or rent.

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