Credit and mortgage advances
South Africa - Absa
Continued steady growth in household credit and mortgage balances
In the first seven months of 2019 outstanding credit balances in the South African household sector (R1 687,8 billion) increased by 6,3% year-on-year (y/y), with growth slightly down from 6,5% y/y up to the end of June.
Household secured credit balances (R1 276,3 billion and 75,6% of total household credit balances), which includes mortgage, leasing and instalment sales balances, recorded growth of 5,1% y/y in the 7-month period up to end-July, which was marginally down from 5,3% y/y at end-June. Mortgage balances growth was also slightly lower at end-July from end-June (see below). Growth in instalment sales balances (R287,2 billion and 22,5% of total household secured credit balances) slowed down further to 7% y/y at end-July from a recent peak of 8,3% y/y at end-April.
Credit and Mortgage Advances (Jul 2019)
Home loans: who’ll be king of the castle?
South Africa - Financial Mail
Will Absa reclaim the home loan crown?
Almost three years since announcing its plan to claw back its dominance in this coveted sector of the market, the bank still lags rival Standard by a considerable margin. Absa’s share is now 23%, while Standard is comfortably top of the pile at 34%.
That’s a far cry from 2009, when Absa was responsible for one in three home loans written in SA. Head of home loans Geoff Lee says that soon after Absa introduced its new operating model in 2016, originators and estate agents realised it was open for business again. Unfortunately, by then it had surrendered its mantle to Standard Bank.
Middle market in a pinch
South Africa - Property360
The drop in prices in the luxury market is now spilling over to properties in the next value category
Property prices in Cape Town’s more expensive areas are still flailing under the general economic pressure, creating opportunities for savvy investors, estate agents say.
FNB’s latest Property Barometer indicates the Atlantic seaboard and southern suburbs are falling deeper into contraction and this deflation is now spilling over into the middle-priced areas.
Lower-priced areas, however, remain resilient. Using deeds data to compile house price indices for the main sub-regions in the City of Cape Town, FNB analyst Siphamandla Mkhwanazi says average estimated house-price growth in the city “softened” further in Q2 2019 to just 0.5% year-on-year.