Housing in Southern Africa August 2016

Housing

for Double

South Africa’s mounting urban land and infrastructure scarcity has been

key not only in a ‘drive’ towards

J ohn Loos, Household and Property Sector Strategist at FNB says that in an attempt to measure the progress of the Sectional Title segment’s growth, “We use deeds data transactions by individuals only.” Loos notes the number of sectional title transactions has increased significantly since 2010, following the 2008 global re- cession. More recently the data shows sectional title transactions volumes having risen to 29,9% of total property transactions by individuals to May 2016, from a cyclical low of 23,7% in 2010. The relative recovery in sec- tional title transaction volumes has more or less coincided with a post-recession recovery in first time buying levels from around 2010, with more cyclical first time buyers’ demand for smaller-sized sectional title homes. This strong sectional title demand post-2010 contributed to the segment’s average house price inflation to utilise land and infrastructure more economically. smaller average sized properties, but has led to a more significant portion of sectional title homes in a bid

August 2016