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Johannesburg - South African mortgage lending growth slowed 26.4% year-on-year (y/y) in August from 26.7% the previous month.
Further, loans for commercial property showing signs of cooling off after peaking at 41.6% in November last year.
John Loos, a property strategist at retail bank FNB, noted that the August slowdown was the seventh month of successive deceleration in the rate of increase.
He added that although loans advanced to individuals - which account for over 80% of the total mortgage book - drove the slowdown, the commercial property component of the mortgage market had also seen slowing growth.
"The impression that it is only the residential market that is driving the slowdown is incorrect," said Loos.
He pointed out that growth in commercial property mortgages outstanding had slowed in recent months due to "mild short-term pressure on the back of rising interest rates and slowing economic growth".
Loos noted that loans advanced to the commercial property market slowed to 30% y/y in July this year from 41.6% in November last year.
- I-Net Bridge