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 2^nd quarter of 2020) and to level 1 on 21 September 2020 (at the end of the 3^rd 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 2^nd quarter of 2020 which predominantly formed the hard lockdown period.

During the 3^rd 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 3^rd 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 3^rd quarter of 2020 increased to R1 110 000 - i.e. up by 2% since 3^rd 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