Johannesburg, Dec 9 (I-Net Bridge) - Growth in Standard Bank's
(smoothed) median house price (using the assessed values of those houses
for which mortgage finance was approved by Standard Bank) experienced
further easing, contracting by 1% year on year (y/y) in November, from
-0.5% y/y in October.
SA's key economic sectors are under pressure, and may remain
so, given the decline in global demand. Also, the labour intensiveness
of these sectors might rein in future employment gains.
Household credit growth was reported to remain in low single digits along with house price growth.
Standard bank said that depressed consumer confidence and
still-soft, albeit positive growth in household consumption, were
corroborated by the cautious trend in credit uptake. Total credit
extension to households ticked up to 5.3% y/y in October, after easing
to 5.0% y/y in September. However, growth in mortgage advances eased
marginally, to 2.1% y/y in October, from 2.2% y/y in September.
In addition, while the ratio of household debt to disposable
income geared down in Q3:11, to 75.0%, from 75.8% in Q2:11, households
still carried a sizeable debt burden, with the ratio of debt to
disposable income not significantly different from its 2008 peak of
82.7%. Q3:11 GDP, at 1.4% quarter on quarter, confirmed that economic
growth may be sluggish for longer than previously anticipated.
House price growth has remained rooted in low single digits
throughout 2011, and this is likely to continue in 2012. SA's
macroeconomic fundamentals indicate a lack of stimuli for the
residential property market to return to double-digit y/y price growth.