2017 looks to be a challenging year for the South African property market, as quarterly statistics released by ooba, South Africa’s largest bond originator, point to ongoing affordability constraints for South African consumers.

A question often asked is to what extent mortgage lenders still provide “100% loans”, meaning mortgage loans that amount to 100% of the value of the home being purchased.

Although ooba’s property statistics for February indicate year-on-year growth in house prices, slower year-on-year price growth trends are emerging.

In the past year, home prices in the first-time buyer sector have grown only half as fast as they did in the previous 12 months, according to the latest statistics from BetterLife Home Loans, SA’s biggest mortgage originator.

Property statistics for the fourth quarter of 2015 released by ooba, South Africa’s largest bond originator, show house prices continued to grow in excess of inflation as the demand for residential property remained buoyant despite a weakening economy.

ooba’s first quarter 2015 results show slowing growth in property prices, but positive trends in home loan lending conditions.

MortgageSA has set its sights on the lower end of the housing market, and has partnered KwaZulu-Natal micro lender Ithala Development Finance Corporation in making inroads into the low-cost housing market