Good news greets SA’s property market with banks keen to lend
- The South African property market has defied predictions and has been thriving according to bond originator, BetterBond
- In comparison to 2018, the year-on-year increase has been 7.4% in the number of bond applications submitted
- The total value of bonds granted by loans has also increased substantially from 2017 to 2018
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In light of the recession and unprecedented growth previously, it was widely predicted that the South African property market would face a lull this year.
However, statistics show the market has indeed defied predictions according to bond originator, BetterBond.
BetterBond CEO Rudi Botha said, “Consumers and investors have maintained their enthusiasm for SA real estate even in the face of all the economic and political ‘noise’ leading up to the General Election on 8 May,”
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BusinessTech reported that BetterBond’s stats indicate an increase in the number of bond applications when compared to the same month in 2018.
For example, the January 2019 figure showed an increase of 7% compared to January 2018.
Botha also explained that banks have shown a great willingness to lend towards the residential sector.
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This is supported by the figures, which indicated an increase in the number of approved bonds and total borrowed amount.
National Credit Regulator (NCR) stats show an increase from R40 billion to 42 billion in new home loans over the last two quarters of 2018.
Briefly.co.za also noted the greater success rate that bond originators enjoy, as explained by Botha.
He said, “They show that the overall approval ratio for new credit applications in SA has fallen to 44%, while our approval ratio for home loan applications has remained at more than 75% for the past two years.”
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Source: Briefly News
