Real estate experts say the months of June and July have seen a 3% increase in approval of home loan applications.
A Limpopo property developer, Sunet Scheepers says the impact of the coronavirus pandemic on the economy has not negatively affected the sale of property completely.
Scheepers says consumers have taken advantage of low-interest rates.
Bond developers from Ooba Bond Originators, say while approvals by banks were on the decrease since March, the months of June and July saw a 3% increase in the number of people whose bond applications were approved.
Scheepers says eager consumers have taken advantage of low-interest rates. She says areas like Polokwane have seen a higher demand for property.
“Currently the property market in Polokwane is performing exceptionally well especially in the section of vital markets and townhouses or flats that is priced well and sells quickly. Even full time properties in well established areas or high security areas that are priced competitively and offer modern upmarket finishes is in high demand, we are currently experiencing a trend where people who used to rent are now purchasing their own properties,” says Scheepers.
Scheepers however says banks have adopted more cautious lending practices due to COVID-19 and the challenges facing the labour market such as retrenchments.
“The statistics are showing that approval rates are now trending lower on a year to year because the bank is adopting a more cautious lending practices due to the poor economic outlook as a result of the COVID-19 pandemic and there is a slight decrease of point eight percent of the total approval rates across all banks on a year to year basis, I think we will see an even bigger market in the next six or twelve months,” says Sceepers.
New property owner at Seshego outside Polokwane in Limpopo, Theresho Marakalala says her repayments on her house are manageable.
“Property is now cheaper, even the repayments is cheaper than before COVID-19 actually so for me it is cheaper to buy now more than anything else. My house is in Seshego Zone 8, so comparing the prices to the ones in town, it was cheaper for me, I encourage people to buy property,” says Marakalala.
New property buyers have also been urged to be cautious and aware of market movements while making the decision to invest in property.
COVID-19 | Impact on the property sector