South Africa: How the Covid-19 Pandemic Has Massively Boosted Second Home Ownership in South Africa

analysis

Data published by FNB on Tuesday showed that the commercial bank saw an incredible 46% increase in the number of consumers who purchased a second property in the fourth quarter of 2020, compared to the fourth quarter of 2019.

The housing market has emerged as a bright spot in South Africa's fragile economy in 2020, with industry players reporting an unexpected boom in property purchases on the back of near 50-year-low interest rates.

The South African Reserve Bank's decision to cut interest rates by three percentage points in 2020 brought the bank's prime lending rate to 7%, making home ownership more affordable and resulting in a flood of first-time homebuyers.

Lower interest rates also pushed more existing homeowners into the secondary homeownership market. In other words, an increasing number of existing homeowners now own more than one property either for investment purposes (to let and generate regular income), to own as a holiday home, or for other reasons.

Data published by FNB on Tuesday showed that the commercial bank saw a 46% increase in the number of consumers who purchased secondary properties in the fourth quarter...

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