Credit and mortgage advances
South Africa - Absa
Relatively stable growth in household credit and mortgage balances in the first half of 2019, with divergent home loan repayment patterns evident across household income categories up to mid-2019
The value of outstanding credit balances in the South African household sector (R1 677,1 billion) showed growth of 6,2% year-on-year (y/y) to the end of June 2019, marginally up from 6,1% y/y at the end-May when the outstanding balances were R1 669,3 billion.
Household secured credit balances (R1 266,6 billion and 75,5% of total household credit balances), which includes mortgage, leasing and instalment sales balances, increased at a rate of 4,8% y/y in the 6-month period up to end-June, which was marginally down from 5% y/y at end-April and 4,9% y/y at end-May. Mortgage balances growth was also slightly lower at end-June from end-May (see below). Growth in instalment sales balances (R286,2 billion and 22,6% of total household secured credit balances) tapered off to 7,3% y/y at end-June from 7,5% y/y at end-May and 8,3% y/y at end-April.
Credit and mortgage advances
Electronic conveyancing: The property industry's new bandwagon
UK - DL Piper
The Australian property industry is in the process of converting from the 150-year-old Torrens title physical paper system of exchange and settlement of property transactions to an online electronic conveyancing system. The introduction, and in some cases, mandatory use of the Property Exchange Australia (PEXA) platform for electronic property lodgment is gearing up to make the traditional, paper-based settlement process a thing of the past.
However, as with the introduction of any industry-disruptive technology, there can be associated risks and property buyers, sellers, and financiers should be aware of these risks as they enter into the new era of electronic property transactions.
What is PEXA?
The PEXA platform was launched in 2010, providing for the digital settlement of conveyancing and other land transactions in an electronic workspace. Conveyancers can use the PEXA platform to liaise with the property buyer or seller's bank, digitally sign and lodge documents and transfer funds, removing the need for bank cheques and physical exchange of documents. At settlement, PEXA automatically releases the balance of the transaction funds to the seller and electronically distributes other payments, including loan repayments, stamp duty and GST. PEXA automatically lodges the relevant registry instruments for registration with the land authority in the state where the transaction occurs.
DL Piper
Single person households present multiple opportunities
South Africa - Property360
Half of South African adults are single, with 95% of men and 86% of women under 34 never married and not living with a partner - survey
South Africa has not kept pace with the growth in both population and household volumes, and this presents vast opportunities for residential property stakeholders. These opportunities have been highlighted by the results of Statistics South Africa’s new General Household Survey Report, says Rudi Botha, chief executive of bond originator BetterBond.
The survey found about half of South African adults are single, with 95% of men and 86% of women under 34 never married and not living with a partner. This means the rate of new household formation in the country – which usually happens as people move out of their childhood homes and set up their own – is growing at 2.4%, whereas the population is growing by only 1.3% a year.
Property360
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