SA Property Market - A Lockdown Snapshot
The SA property market has shown a good recovery since the hard lockdown levels 5 and 4 which started on 27 March 2020 and were only relaxed to level 3 on 17 June (close to the end of the 2nd quarter of 2020) and to level 1 on 21 September 2020 (at the end of the 3rd quarter of 2020).
According to Lightstone Property data 48 160 (bonded and unbonded) property transfers were recorded at the Deeds Office between July and September 2020 - up by 711% from the 3 869 transfers which were registered during the 2nd quarter of 2020 which predominantly formed the hard lockdown period.
During the 3rd quarter of 2020, 24 666 freehold properties and 12 769 sectional title units were sold countrywide (excluding estates, land only transfers and farms). This relays to a 31% decrease in freehold transfers relative to the same period during 2019 and 28% decrease in sectional title transfers.
Average prices for freehold homes relative to the 3rd quarter of 2019 remained stable and dropped marginally by 0,05% from R1 116 234 to R1 115 670 and by 5% for sectional title units - from R1 023 549 to R970 381. The average bond amount granted during the 3rd quarter of 2020 increased to R1 110 000 - i.e. up by 2% since 3rd quarter 2019.
The different shares of the property market transfers in terms of price segments, are:
28% - R 0 to R400 000 (i.e. properties priced below R400 000)
25,3% - R400 000 to R800 000
26,9% - R800 000 to R1 500 000
15,2% - R1 500 000 to R3 000 000
4,6% - R3 000 000 and above (up from 3% during the previous quarter)
It is interesting to note that:
- 53,3% of all property transfers in South Africa are properties priced at below R800 000;
- only 19,8% of all property transfers are in the price brackets above R1,5 million