Property group, RE/MAX, has released its national housing report for Q1 2017, detailing the number of houses sold in South Africa over the last three months, the average house price per sector and the difference in house prices compared to 2016.
According to Deeds Office data, 35,088 bonds were registered from January to March this year, with the average bond amount at around R1,027,000, while it is interesting to note that during this same period the statistics revealed that 45,552 bonds were cancelled, said the report.
Over the same time period 29,654 freehold homes have been sold, with around 15,932 sectional title units sold during the same time frame. The current average price for a freehold property is R1,161,481, up from R1,096,487 last year. This equates to an increase of 5.9%.
The average price of a sectional title unit has also improved notes the report, however by a far smaller margin of 2.2%. This year the average price of a sectional title unit is approximately R944,008, whereas last year the average price was R923,348.
Housing statistics from Lightstone, a property information and statistic provider, reveal that the largest amount of sales traffic in the property market was from homes priced below R400,000.
This price bracket accounted for 29.60% of property sales in the first quarter of this year.
“The data brings to light the high demand for affordable housing in South Africa, a sector of the market that continues to thrive,” said Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
Properties priced between R400 000 and R800 000 accounted for 26.76% of the sales, while those priced between R800 000 and R1.5 million made up 23.89% of the country’s home sales during the first three months of the year.
Homes priced from R1.5 million to R3 million represented a 14.54% share of the market, while properties with a price tag above the R3 million mark, accounted for just 5.21%.
“It goes without saying that as the home price bracket increases, the target audience that would be able to afford the home decreases. As the statistics reveal only a small percentage of the population is buying homes for R3 million or more,” said Goslett.