Bonds for homes priced over R3 million surge in South Africa

The positive impact of lower interest rates is still felt, and BetterBond reports a nearly 10% increase in bond applications in the 12 months to December 2021, said CEO Carl Coetzee. increase.

Of these, fixed income originators said that 60% of applications came from the first homebuyers to take full advantage of improved affordability. This percentage has not changed since the 12 months leading up to December 2020.

According to Betterbond, the percentage of approval applications in December increased by 12.4% year-on-year, and the approval rate improved by 2.41%.

According to Coetzee, the total number of officially approved applications increased by 16.6% during this period, compared to the 12.34% increase reported in the 12 months to December 2020. Average home purchase prices have increased by almost 12% in 12 months. Until December 2021, he pointed out.

“The percentage of formal grants has increased in all price ranges above R1 million. This suggests that the impact of low interest rates has had a positive impact on the market as a whole.”

Formal grants for homes of R5 million to 1 million rants accounted for the majority of BetterBond applications for the 12 months leading up to December last year. However, Coetzee said that 38.8% of the formal grants during this period were down 11% since 2020.

Emphasizing buyer activity updated in all price ranges, the proportion of formal subsidies for homes over Ran 3 million increased significantly from 4.41% at the end of 2020 to 6.45% at the end of 2021.

Subsidies to homes of R2 2.5 million to 3 million account for 4.3% of all Better Bond grants, compared to 3.17% in 2020, and homes of R2 2 million to 2.5 million are all formal grants. It accounted for 6.64%. Compared to 5.57% at the end of 2020.

“Compared to the 11.99% reported at the end of 2020, homebuyers of R11.5 million to 2 million accounted for 13.45% of all formal grants. Formal for homes of R1-1 to 1.5 million. The percentage of grants remained fairly constant at around 19.9%, “he said.

read: Nine notable real estate trends in 2022 in South Africa, including the most demanding regions

Bonds for homes priced over R3 million surge in South Africa

Source link Bonds for homes priced over R3 million surge in South Africa

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