Citymark: Mortgage Lending in South Africa 2017

The Centre for Affordable Housing Finance in Africa develops Citymark dashboards as part of our market intelligence on the South African housing sector–these web-based dynamic dashboards deliver local housing market intelligence to your desktop, accurately, efficiently and easily. The first dashboard in the series offered an overview to South Africa’s housing sector,  including the distribution of residential properties at the local area level by market segments, and key municipal housing market indicators, for each of South Africa’s eight metropolitan municipalities.

In this second dashboard on mortgage lending, we look into the levels of mortgage support for housing transactions and registrations by lending institutions in each of the eight metros. Mortgage finance is important in facilitating housing affordability, market transactions and market growth. Mortgage bonds allow borrowers to move up the housing ladder by leveraging their income and equity to purchase homes with increasing value.

We present the number and value of new, resale and total transactions with a bond at the subplace level for the eight metropolitan municipalities: Cape Town, Johannesburg, Ekurhuleni, Tshwane, Nelson Mandela Bay, Buffalo City, Mangaung and eThekwini—for the period 2007 to 2017. In addition, we provide the total number and value of bonds outstanding.

New transactions refers to the first time a property is registered to a private individual on the deeds registry; this indicator serves as a proxy for new construction, and include houses that were built by a private developer as well as units that were built through government programmes and transferred to beneficiaries. Only houses where the beneficiary has received their title deed will be included in this data.

Resale transactions refers to existing properties that are sold for a second and then subsequent times. By comparing new and resale transactions by market segment, it is possible to consider where growth is occurring in a market.

For tips on how to navigate the dashboard, see instructions below.

How to use this dashboard: 

Data source: This dashboard utilises 2017 title deeds data obtained from Lightstone Pty Ltd, South Africa’s largest retailer of deeds registry and other data. This dashboard only covers transactions that have a bond on properties which appear on the deeds registry (the formal market) – it does not include properties that are not formally registered on the deeds registry, as might be found in backyards or in informal settlements. Please feel free to contact Alison Tshangana on alison@housingfinanceafrica.org with any questions.

Suggested citation: Centre for Affordable Housing Finance. Citymark Dashboard: Mortgage Lending in South Africa 2017. http://housingfinanceafrica.org/

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