Buyer Confidence Grows

December 16- Absa, one of South Africa's biggest mortgage lenders, revealed that the price of properties in the country has risen for the fourth month in succession.

As such, Absa is optimistic about the future of housing in the country.

Absa said that November was the fourth month that property prices rose, thanks to a number of factors such as interest rate cuts and the end of the recession.

The mortgage originator said buyer confidence is growing by the month, as has been reflected in the latest statistics.

The cost of an average home in South Africa rose 4.7% to R1 million in November, compared to a year ago.

"Homebuyers and investors seem to be gaining confidence by the day and the oversupply of stock that has plagued the market for many months is rapidly being absorbed, which will further underpin the price recovery," said Berry Everitt of Chas Everitt International Property Group.

An Absa report summarized the optimism felt across the market.

"Housing marking conditions are expected to improve further in 2010, but it is set to be a gradual process with nominal price growth forecast to remain in single digits over the next 12 months," it read.

Everitt added to the upbeat note. "Although this year has been an extraordinarily difficult on we are really upbeat about the next 12 months, especially with all the economic promise inherent in the Soccer World Cup," he said.

"We ... foresee that an improving economy and spreading empowerment will ensure that demand keeps expanding and having a positive effect on real estate values going forward," he concluded.

12/16/2009 8:15:24 AM