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Property Barometer - House Price Index
South Africa - FNB
Average house price growth surprised on the downside in the 1st quarter of 2018. Western Cape house price growth slowdown plays a role in this

March 2018 saw the FNB House Price Index growing by a slower 1%, yearon-year, down from a revised 2.7% in February, and from 2017’s high of 5.1% reached in November.

This implies a weak start to 2018, despite indications of improved national sentiment and an improved economy early in the year.

However, one key additional constraint on the national house price growth rate of late has been the “normalization” of house price growth in the Western Cape. Not long ago, that province’s relatively strong house price growth was a boost to the national average price growth. Of late, however, its rate has become “pedestrian” like the rest.
FNB Property Barometer

Pretoria to promote inner-city high-rises
South Africa - IolProperty
Tswhane mayor Solly Msimanga has said the City wants to scrap outdated by-laws which negatively affect Pretoria's densification strategy to create urban spaces for people to live closer to their workplaces.

This implies a weak start to 2018, despite indications of improved national sentiment and an improved economy early in the year.

One of the by-laws in contention prohibits the building of skyscrapers in the space between the Union Buildings and Voortrekker Monument. This by-law was not in keeping with the vision of a modern city, which should provide housing for people travelling long distances to work, the mayor said.

Msimanga shared his concerns about the outdated by-laws at Lynnwood Bridge, where he addressed businesspeople and government officials recently.

"We want now to ensure that we dispose of prohibitive by-laws and policies. One by-law is that you cannot build anything that is obstructing the view of the Union Buildings to the Voortrekker Monument," he said.

Credit and mortgage advances
South Africa - Absa
Continued low household credit and mortgage balances growth

Growth in the value of outstanding credit balances in the South African household sector (R1 560,1 billion at the end of February 2018) was recorded at 3,9% year-on-year (y/y) over the 12-month period. Year-on-year growth in secured credit balances was marginally lower at end-February, whereas growth in unsecured credit balances was up by around one percentage point compared with that of end-January.

Household secured credit balances, consisting of mortgage and instalment sales balances, showed growth of 3,8% y/y to R1 194,2 billion (76,5% of total household secured credit balances) up to the end of February this year. Mortgage balances growth was on a year-on-year basis somewhat lower at end-February (see below), whereas growth in instalment sales balances was higher at 6% y/y from 5,4% y/y at end-January.

Household unsecured credit balances (R366,9 billion and 23,5% of total household credit balances) increased by 4,1% y/y up to end-February (3% y/y up to end-January 2017). General loans and advances balances (mainly consisting of personal loans and micro finance and with a share of 58,2% in unsecured balances), increased by 4,4% y/y to R213,1 billion up to the end of February (3,3% y/y at end-January).
Credit and mortgage advances

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