First quarter oobarometer statistics released by ooba, South Africa’s foremost home loan comparison service, show continued robust growth in the residential property sector despite a year dominated by the Covid-19 pandemic and the ensuing economic fallout.
According to the oobarometer, the Average Purchase Price increased by 13.8% for the first quarter of 2021 (Q1 21) compared to Q1 20. The Average Purchase Price of first-time buyers showed a 15.1% increase for the same period and a 3.5% increase for Q1 2021 compared to Q4 2020.
In ooba’s commentary in the first quarter of 2020, South Africa had just entered its first hard lockdown. At the time, property prices were experiencing a negative growth slump and the future was uncertain, with estate agencies across the country unable to operate.
Rhys Dyer, CEO of ooba, says “The paradox of double-digit property price growth recorded for residential property amidst a global pandemic coupled with the worst global and local economic downturn since the global financial crisis of 2008 is astonishing.”
In the space of a year buyers have substantially changed their criteria for an ideal home. Initial lockdowns forced a major portion of the workforce as well as scholars and students to work or study from home. For a large proportion of the population this has become a semi-permanent or permanent arrangement. Consequently, buyers are prioritising quality of life and new ways of working when purchasing a home.
Properties that feature separate workspaces, reliable internet connectivity and more space for families spending more time at home are in demand. Buyers are finding bigger properties at better value for money in suburbs outside of the main CBD. Continue reading
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