R56.6 billion (US$3.79 billion), a 40 per cent increase from the same period in 2019 prior to the global health crisis. In the June quarter of 2020 however, this figure was less than R13 billion, reflecting the harsh impact of the pandemic-induced lockdowns.
According to a Consumer Credit Market Report published by the National Credit Regulator (NCR), the value of mortgages granted in in the second quarter of 2021 was also 4 per cent higher than the previous quarter, when the total value was at R54.27 billion.
While this was a result of many first home buyers attempting to take advantage of the record-low interest rates, those in the upper end market also decided to seize the opportunity to upscale their homes. Figures show that almost 90 per cent of the mortgages approved in the June quarter were for more than R700 000. This trend seems to have continued to grow through the following months, as largest percentage growth of nearly 45.5 per cent in the number of formal grants was for homes with a purchase price of more than R3 million, during the 12 months ending August 2021.
“While much of the bond activity recorded last year after the easing of lockdown restrictions in June was from first-home buyers, we are seeing that buyers at the upper end of the market are also making the most of the low interest rates,” Carl Coetzee, the chief executive of mortgage broker BetterBond, said. “Shifting home ownership patterns have intensified the demand for larger sectional title units and freehold properties with gardens or access to amenities.”
