No one could claim that the South African property market has done well in 2011. Sellers are finding that their estimated prices need to be lowered; buyers are eager but struggle to buy with banks hesitant to approve home loans
The third quarter has shown mild improvement on the previous quarter in terms of the growth in building completions.
The big banks may well have backed out of seemingly high-risk inner-city property markets but alternative lenders, private equity funds and institutions are starting to pick up the slack
US-backed private equity fund International Housing Solutions, which entered SA’s affordable housing market in 2008, recently breached the R1bn lending mark.
There is now more statistical and research information in respect of lower income earners available, enabling the banks to better assess their risk. This represent significant opportunity in quality low-cost housing for the private sector and the partly-subsidised Social Housing category
International Housing Solution has so far provided funding to 25 projects and about 25 000 units across all the major urban centres in South Africa
SA’s prolonged housing slump has already prompted 50000 estate agents to leave the industry since 2007, when close to 80 000 were registered with the Estate Agency Affairs Board.
Although the United States has temporarily bought themselves a reprieve by extending the debt ceiling on its debt payments, the current precariousness of the western world’s economies is still creating uncertainty on a scale never before seen in his 19 years in property.
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