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Johannesburg - Standard Bank's median house price eased in February, recording a 1.5% year-on-year (y/y) growth rate, from 2.3% y/y in January.
On a month-on-month basis, growth amounted to 1.5% in February from -2.0 growth in the prior month, the bank's data showed.
The median price remained in negative territory in real terms, recording a -2.2% y/y change in February - utilising a 3.7% estimate for February consumer price inflation - from -1.3% y/y in January.
Standard Bank property analyst Johan Botha said the residential property market still had no growth stimulus, despite the lowest interest rates in three decades.
"Mortgage advances remain sluggish in spite of overall buoyant household confidence and improved debt affordability. Stubbornly high levels of debt as well as an uncertain labour market may keep stalling the long-term decisions of residential property market participants," he warned
Botha however acknowledged the growth rate in real household disposable income, which, he said, had positive implications for the financial standing of households.
"Overall, the residential property market has failed to ignite in the presence of the lowest interest rates for 30 years. Strengthened consumer confidence and sentiment, not interest rates exclusively, must now spark an improvement in housing demand.
"However, with sluggish economic growth, still-high debt levels of households, and a struggling labour market, a strong recovery in the residential property market seems far off," Botha added.
Growth in the residential property market in 2011 was likely to track the movement in consumer inflation, with zero or negligible growth exhibited in real terms, he said.
On a month-on-month basis, growth amounted to 1.5% in February from -2.0 growth in the prior month, the bank's data showed.
The median price remained in negative territory in real terms, recording a -2.2% y/y change in February - utilising a 3.7% estimate for February consumer price inflation - from -1.3% y/y in January.
Standard Bank property analyst Johan Botha said the residential property market still had no growth stimulus, despite the lowest interest rates in three decades.
"Mortgage advances remain sluggish in spite of overall buoyant household confidence and improved debt affordability. Stubbornly high levels of debt as well as an uncertain labour market may keep stalling the long-term decisions of residential property market participants," he warned
Botha however acknowledged the growth rate in real household disposable income, which, he said, had positive implications for the financial standing of households.
"Overall, the residential property market has failed to ignite in the presence of the lowest interest rates for 30 years. Strengthened consumer confidence and sentiment, not interest rates exclusively, must now spark an improvement in housing demand.
"However, with sluggish economic growth, still-high debt levels of households, and a struggling labour market, a strong recovery in the residential property market seems far off," Botha added.
Growth in the residential property market in 2011 was likely to track the movement in consumer inflation, with zero or negligible growth exhibited in real terms, he said.
