Publications
Partners
Johannesburg - Standard Bank Group [JSE:SBK] on Tuesday said its median house price growth rose slightly in March, to 2.9% year-on-year (y/y) from 1.5% y/y in February.
The month-on-month growth was 0.8% in March from 1.5% the preceding month.
According to the bank's data, housing demand rose modestly in the month with both the volume and value of applications received showing improvements.
The mortgage lender said households experienced solid but moderating growth in disposable income in the fourth quarter of 2010, with net household wealth and lower debt servicing costs improving - all of which boded well for durable goods spending.
However, it cautioned that the residential property market was still plagued by sluggish growth in mortgage advances, declining consumer confidence and stubbornly high debt.
"Increasingly challenging conditions for consumers - particularly regarding inflationary pressures - may continue to curtail any recovery in the residential property market," Standard Bank said.
The bank said improving employment levels as well as firmer consumer confidence should spark an improvement in housing demand, but stricter conditions for consumers and persistently high household debt levels may curtail any recovery in the residential property market.
"We maintain our view of growth in the residential property market in 2011 tracking inflation, with zero or negligible growth in real terms," it said.
The bank expected household consumption to grow by 4.4% in 2011 and 4.5% in 2012, underpinned by low interest rates and improved employment levels.
The month-on-month growth was 0.8% in March from 1.5% the preceding month.
According to the bank's data, housing demand rose modestly in the month with both the volume and value of applications received showing improvements.
The mortgage lender said households experienced solid but moderating growth in disposable income in the fourth quarter of 2010, with net household wealth and lower debt servicing costs improving - all of which boded well for durable goods spending.
However, it cautioned that the residential property market was still plagued by sluggish growth in mortgage advances, declining consumer confidence and stubbornly high debt.
"Increasingly challenging conditions for consumers - particularly regarding inflationary pressures - may continue to curtail any recovery in the residential property market," Standard Bank said.
The bank said improving employment levels as well as firmer consumer confidence should spark an improvement in housing demand, but stricter conditions for consumers and persistently high household debt levels may curtail any recovery in the residential property market.
"We maintain our view of growth in the residential property market in 2011 tracking inflation, with zero or negligible growth in real terms," it said.
The bank expected household consumption to grow by 4.4% in 2011 and 4.5% in 2012, underpinned by low interest rates and improved employment levels.
