Research reports on South African residential property sector
Mortgage Advances - 30 May 2012
May 31, 2012
30 May 2012 Household mortgage advances growth improving
Year-on-year (y/y) growth in the value of outstanding credit balances in the South African household sector edged higher to 7,2% in April 2012 from 6,8% in March. The outstanding amount of household credit was R1 211,6 billion in April, up by R6 billion, or 0,5%, from R1 205,6 billion in March. Outstanding private sector mortgage balances, comprising commercial and residential mortgage loans, showed an increase of 2,4% y/y in April. The amount of outstanding mortgage balances in the private sector was virtually unchanged at R1 073,2 billion in April, up by a negligible R70 million, or 0,01%, from March. In the household sector the value of outstanding mortgage balances, largely related to residential property, registered growth of 2,3% y/y in April this year (2,1% y/y in March). The outstanding amount was R781,1 in April, which was about R380 million down on the March figure. Outstanding household mortgage balances had a share of 64,5% in total household credit balances in April. Mortgage advances growth is forecast to remain well in single digits in the rest of 2012, set to be impacted by the performance of the economy in general, interest rate movements, trends in household finances and consumers' risk profile, and residential property market activity and transaction volumes.
Compiled by: Jacques du Toit Senior Property Analyst Absa Home Loans Absa Group Limited (Reg No 1986/003934/06) 45 Mooi Street Johannesburg 2001 PO Box 7735 Johannesburg 2000 South Africa Tel: +27 (0) 11 350 7246 E-mail: firstname.lastname@example.org Website: http://www.absa.co.za
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