• Inside Labour

    Terry Bell explores the connection between poultry, poverty and desperation.

  • A new ANC sweeper?

    Have the Guptas' new auditors mastered how to look the other way on cue, asks Solly Moeng.

  • Strategy for the big boys

    Formulating strategy across the span of huge companies is a marathon, says Ian Mann.

All data is delayed
See More

Moderate growth in SA house prices

Oct 11 2012 15:11
Johannesburg - There was a moderate growth in house prices for the month of September 2012‚ according to the latest statistics from ooba‚ South Africa’s biggest bond originator.

The average house price for September was R876 717‚ up 4.5% year on year and 4.9% month on month.

First-time-buyer statistics also showed moderate growth.

The average purchase price for first-time buyers was up 6.7% from R619 920 in September 2011 to R661 159 in September 2012. Month on month‚ there was a 0.2% growth in the average purchase price for first-time buyers.

Of ooba’s total intake of bond applications in September‚ 54% were from first-time buyers‚ which is 1.9% up year on year. This is the highest first-time buyer intake ooba has recorded to date and indicates the increased demand for property in this market‚ which is translating into continued year-on-year property price growth.

ooba continues to report significant increases in the value of home loan applications and approvals. The value of its home loan approvals was up 29% year on year in September.

“The September numbers reinforce the recent trend of continued marginal price growth‚ underpinned by increasing levels of activity and new entrants into the market‚” says Saul Geffen‚ CEO of ooba.

“We expect the short-term trend to continue in this vein.”

The average home loan deposit increased by 4.7% from R142 885 in September 2011 to R156 172 in September 2012‚ which is 17.8% of the purchase price. Month on month‚ the average home loan deposit increased 56.1%.

“The large month-on-month increase in the average home loan deposit is largely due to recent changes in bank lending policies particularly favouring loans with at least a 10% or more deposit‚” says Geffen.

Although the initial decline ratio increased 2.1% to 48.0% in September‚ the percentage of applications that are declined by one bank but approved by another improved by 4.9% to 27.4% in September this year resulting in ooba’s effective approval rate being 65.2% of applications‚ up from 64.4% last year.

ooba’s trailing approval rate‚ which takes into account loans approved after month-end is currently 70.5%‚ translating into seven out of every ten home loan applications originated through ooba being approved.

The average approved bond size is showing a year-on-year increase of 3.6% to R720 545 in September but a month-on-month decrease of 2.7%.

ooba  |  house prices


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The drop in inflation:

Previous results · Suggest a vote