House Price Indices - February 2013
Absa - South Africa
House price growth improves further in February
February 2013 saw year-on-year growth in the average value of homes in the middle segment of the South African housing rising further. This was largely the result of the base effect of slowing house price growth as well as price deflation in one segment of the market twelve months ago. However, monthly price growth is still on a declining trend, which will most likely cause year-on-year price growth to moderate later this year. These trends are according to the Absa house price indices, which are based on applications for mortgage finance received and approved by the bank in respect of middle-segment small, medium-sized and large homes (see explanatory notes).
Although nominal year-on-year house price growth is on an upward trend, price growth for the full year is projected to remain in single digits, which will be the result of monthly price growth still slowing down and expected to be reflected in year-on-year price growth later this year. In real terms house prices are forecast to remain under pressure in view of consumer price inflation forecast to rise to above 6% this year.
Absa House Price Indices Feb 2013
Cape Town Zoning Scheme (CTZS)
City of Cape Town - South Africa
A zoning scheme is a legal document that records all land-use rights on properties in its area of jurisdiction. It includes regulations and restrictions on such rights and how they can be exercised. All municipalities have such a scheme, and they usually serve to manage urban growth and development, as well as conserve the natural and cultural environment within their area of jurisdiction.
A single zoning scheme (Cape Town Zoning Scheme - CTZS) has been introduced in Cape Town, in place of the previous individual schemes, in order to standardise zoning arrangements across the city and therefore achieve consistency and efficiency therein.
The CTZS will come into effect on 1 March 2013. The current schemes will continue to be in force until the 1 March 2013 effective date. Transitional arrangements in this regard can be viewed here.
City of Cape Town
'Deposit drag' keeps property market 'on a choke-chain'
Iol - South Africa
Everyone in the property market knows that the current deposit requirements for home loan approval are among the biggest obstacles to increased home sales and faster property price growth.
But just what the extent of the deposit obstacles might be has not been quantified until now, with the release of new statistics by BetterBond which show how the home buying plans of many consumers are being delayed by many months due to rising deposit requirements.
The BetterBond figures, which represent a quarter of all residential mortgage bonds being registered in the Deeds Office, and include applications to, and bond grants from, all the major lending banks in SA, show that in the 12 months to end-February, homebuyers and owners in SA took up more than 80 000 new home loans, with more than 96% of those loans going towards the purchase of an existing home or the construction of a new one.