Standard Bank – March HPI: Better house price performance, as mortgages continue to tick up

The Standard Bank House Price Index (HPI) rose to 6.7% y/y in March from a downwardly revised 5.4% y/y (originally 6.2% y/y) in February – with freehold property prices outpacing sectional titles for the first time since April 2015.

The HPI is comprised of both freehold properties and sectional titles.

Since the financial crisis until the start of Q2:2015 sectional title property prices under performed freehold property prices. This relationship reversed in Q2:15, possible due to a slowdown in the supply of flats and townhouses in 2015, according to Stats SA’s annual buildings completed data. However, in March for the first time since April 2015 the freehold property price index outperformed and rose 8.5% y/y, up from 7.1% y/y in February. Sectional titles also recorded strong growth, rising to 8.1% y/y in March from 7.7% y/y in February.

Read more here: Standard Bank March HPI _13Apr