Property Brief - March 2024

The data suggests that there is some level of stability in the residential property market with the Q1 2024 results closely aligning with those of Q2 2023. This is likely the result of lower inflation and optimism around the expectation that interest rates may start declining soon, which could spark a more accommodating environment for homebuying.

New home loan activity has started the first quarter of 2024 on an improved note, with a QOQ increase of 7.8% in the number of home loan applications submitted. Unfortunately, high interest rates continue to impact negatively on the residential property market, with the YOY increase still down by 8%. With the Q1 2024 level on par with Q2 2023, it does suggest a measure of new-found stability in the residential property market, probably influenced by lower inflation and speculation that interest rates may start declining soon.

The full list of data points included in this Property Brief, is as follows:

In the Economist's Notes, Dr Roelof Botha explains that we may avoid a recession. In early March Stats SA announced South Africa's GDP figures for Q4 of 2023 and for the year, confirming that economic growth remains in place, albeit at a snail's pace. The YOY real growth rate in the country's GDP amounted to 1.2% in Q4 of 2023, following a decline of 0.7% in Q3. The economy has now grown at real positive rates for 10 of the past 11 quarters and will hopefully start to gain some traction during 2024.

Get the latest BetterBond Property Brief here every month, as soon as it's published.