Streaming issues? Report here
CapeTalk logo 2017 1500 x 1500 CapeTalk logo 2017 1500 x 1500
Best of CapeTalk
22:00 - 00:00
volume_up
volume_mute

Best of CapeTalk
22:00 - 00:00
Home
arrow_forward
MyMoney Online

South African residential property is rapidly and unexpectedly recovering – FNB

13 August 2020 11:35 AM

Pent-up demand, excess supply and record low interest rates are fuelling the unforeseen recovery, says Siphamandla Mkhwanazi.

As recently as May, property research company Lightstone warned of house prices falling by as much as 14.5% in 2020.

Against all expectations, they rose by 1.4% (year to July) instead, according to FNB.

The bank says that home loan applications have recovered to pre-lockdown levels.

Its research, however, still shows property supply far outstripping demand.


Related article - Surprise! The SA property market has roared back, and buyers now want bigger homes


At 7%, the prime lending rate is at a record low.

A mortgage of R1 million results in a monthly repayment of less than R8000.

Africa Melane asked Siphamandla Mkhwanazi – a senior economist at FNB – to talk about the unexpected and rapid recovery of the residential property market.

We’re seeing pent-up demand… buying now when interest rates are low…

Siphamandla Mkhwanazi, senior economist - FNB

We see a lot of activity at the lower end of the market… R750 000 and below… that segment is highly sensitive to interest rates… Affordability has improved… Higher-income households are buying second properties at the lower end in order to rent them out…

Siphamandla Mkhwanazi, senior economist - FNB

There’s a behavioural shift… rising demand for larger, freestanding homes in second-tier cities – Bloemfontein, PE, Kimberley… where you get more space compared to what you would get in, for example, Johannesburg…

Siphamandla Mkhwanazi, senior economist - FNB

It remains a buyers’ market…

Siphamandla Mkhwanazi, senior economist - FNB

Listen to the interview in the audio below.


13 August 2020 11:35 AM

More from MyMoney Online

Tencent 123rf 123rfbusiness

Just choose Tencent! – this and other investment tips from David Shapiro

30 September 2020 3:15 PM

Veteran stockbroker David Shapiro schools The Money Show’s Bruce Whitfield on investing post-Covid and into the next few years.

Share this:
Read More arrow_forward

Toyota-car-logo-vehicle-automotive-industry-car-manufacturers-123rf

[REVIEW] Toyota Starlet: 'Good, fuel-efficient, safe car at a very good price'

29 September 2020 2:31 PM

"The Toyota Starlet makes enormous sense," says motoring journalist Ciro de Siena. Got R204 900?

Share this:
Read More arrow_forward

black-family-house-for-sale-sold-property-household-investment-bond-rent-123rf

R1m home loan costs only R7800/month right now – what are you paying to rent?

29 September 2020 9:34 AM

There’s a glut of properties on the market - should you take advantage? Pieter Koekemoer warns against getting carried away.

Share this:
Read More arrow_forward

Funky hipster retired older mature couple 123rf 123rfbusiness retirement

How to secure your retirement - Bruce Cameron (retired editor, Personal Finance)

28 September 2020 7:24 PM

Bruce Cameron discusses with Bruce Whitfield his new book on securing your retirement, despite corruption and the smashed economy.

Share this:
Read More arrow_forward

Skyscrapers CBD Johannesburg 123rf 123rfbusiness

Long-term investment case for property in Africa remains intact

24 September 2020 1:38 PM

There’ll be many opportunities for frontier investors in the coming years, says Absa's Somaya Joshua.

Share this:
Read More arrow_forward

healthcare-medicine-medical-aid-costs-piggy-bank-financial-health-finance-123rf

2021 medical aid price increases… you may want to sit down for this one

24 September 2020 10:10 AM

Contributions are likely to rise by twice the rate of inflation, warns Clayton Samsodien (Phoenix Financial Services Group).

Share this:
Read More arrow_forward

rands

Covid-19 resurgence in Europe smashes South African rand off its pedestal

21 September 2020 6:50 PM

The rand was just recently trading at a six-month high. Arabile Gumede interviews Bianca Botes (Peregrine Treasury Solutions).

Share this:
Read More arrow_forward

Young man youth teenager teen boy credit card 123rf 123rfbusiness 123rflifestyle

I’ve never been interested in money - Cameron (11), son of Bruce Whitfield

15 September 2020 11:29 AM

"It's brilliant! The jokes are actually funny," says Cameron in his review of "Manage Your Money Like a Grownup".

Share this:
Read More arrow_forward

South African Identity Document

Experian: 'If you get a call like this – don’t argue, just put the phone down!'

15 September 2020 9:20 AM

It's haunting; 24 million records have been breached. Refilwe Moloto interviews Manie van Schalkwyk (SA Fraud Prevention Service).

Share this:
Read More arrow_forward

Fear businessman storm ocean 123rf 123rfbusiness

Foreigners – fearful of SA’s spiralling debt – are dumping government bonds

14 September 2020 7:14 PM

The Money Show’s Bruce Whitfield interviews Kevin Lings, Chief Economist at Stanlib Asset Management.

Share this:
Read More arrow_forward