iAfrica
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FNB has revealed that they’ve seen a 46% increase in the total number of buyers who purchased their secondary properties in the fourth quarter of 2020 compared to the fourth quarter of 2019.
A considerable amount of the property purchases were made in lower priced rental properties, with 20.6% of the purchases made for properties priced at less than R500 000 and 24% for properties priced between R500k and R1 million.
FNB Private Bank Lending Chief Executive, Praven Subbramoney says, “This data mirrors the trend currently seen in the broader property market regarding the increase in secondary property buying in the more affordable segments driven by middle and high income earners who are taking advantage of low borrowing costs and well-priced properties. In addition to low interest rates, the increased demand can be attributed to the savings customers made from not paying student accommodation during the lockdown period and the trading down in this market due to decreased demand.