Real Estate Investor Magazine South Africa November 2014 | Page 33

RESIDENTIAL

6

STATS

Key Property Economy Statistics

Cause for optimism, opportunity to profit through property

As a percentage of total buying, buy-to-let purchases have edged down slightly
from 10% in the previous quarter to 9% in the 3rd Quarter. The decrease in the
percentage of buy-to-let buying stalls a previous small rising trend.

For the time being, tenant payment performance remains relatively good, and
along with higher rental inflation of late, has perhaps made buy-to-let buying
slightly more attractive relative to a few years ago.

The percentage of properties “being sold due to lower than expected
investment income” has ticked up slightly for the last four quarters, from 3%
of total selling in Q1 2014 to 3.75% by Q3 2014, but remains low compared
to pre-2013 levels.

The FNB Buy-to-let Market Confidence Indicator being in positive territory
suggests that the survey panel as a group is still biased towards strengthening
buy-to-let demand in the near term, but the level of expected improvement
has moderated.

While FNB’s current average house price growth forecast of 7.3% may still be
achievable should there be some “re-acceleration” in year-on-year house price
growth in the remainder of 2014, a slower average price growth rate in 2015
is forecasted on the expectation of renewed rate hiking.

Expressed as a percentage of total home buyers, first time buying made up
an estimated 26%, slightly lower than the previous quarter’s 28%, but still far
higher than the 12% low point reached at a stage of 2008.

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November 2014 SA Real Estate Investor

33