Real Estate Investor Magazine South Africa October 2013 | Page 23

REI Residential
Ooba Average Purchase Prices for 2012-2013
Indicator

July 2013

July 2012

Change year on
year (July 2013
vs July 2012)

June 2013

Change month on
month (June 2013
to July 2013)

Average purchase price

902,900

846,863

6.6%

919,965

-1.9%

Average purchase price of first time buyer

710,312

657,069

8.1%

694,143

2.3%

Average approved bond size

771,300

740,733

4.1%

794,357

-2.9%

Average deposit (as % of purchase price)

14,6%
(R131,600)

12.5%
(R106,130)

16.8%

13.7%
(R125,608)

6.6%

Average age of applicant

37

37

No change

37

No change

Average initial decline ratio (first bank decline)

47,3%

48%

-0.7%

47.6%

-0.3%

Ratio of applications declined by one lender
but approved by another

29.9%

27.6%

2.3%

28.7%

1.2%

Effective approval ratio

66.8%

65.3%

1.5%

66.1%

0.7%

Residential Property Prices Going Up
The latest statistics from ooba, South Africa’s biggest bond originator, show continued strengthening
in residential property prices. ooba’s Average Purchase Price has shown a year-on-year price growth
of 8.3% to R905,20, while the First-time Buyers’ Purchase Price is showing a year-on-year increase of
4% to R686,176. Applications from first-time home buyers remain high, with 51.1% of ooba’s intake of
bond applications in August from this segment. “ooba statistics continue to show consistent house price
growth for 2013, reflecting the positive residential demand growth and better market fundamentals
that prevail,” says Rhys Dyer, CEO of ooba. The Average Approved Bond size is higher year-onyear by 3.9%, while the Average Deposit, at 15% of the purchase price, is higher both year-on-year
and month-on-month by 31.6% and 2.7% respectively. ooba statistics for August show that first-time
buyers are placing a deposit of just under 10% on their new homes.

Valuable Input

Adrian Goslett,
CEO,
RE/MAX
“While it is important
for buyers to look at the
property they purchase as
an investment and consider
factors that could affect the
long-term appreciation of
the property’s value, it is
just as important that they
simply love the house and
that it fits their lifestyle.”
www.reimag.co.za

Bill Rawson,
Chairman,
Rawson Property Group
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