Sectional title market stronger than full title homes
Category General News
Johannesburg - Sectional title properties appear to be outperforming the full title market, according to the latest FNB Property Barometer.
According to John Loos, household property sector strategist at FNB, this comes after the sectional title market had largely underperformed between 2005 and 2012. This improved the affordability of sectional title properties considerably compared to the full title market.
Loos is not surprised at the sectional title market outperforming the full title market.
"This is arguably in line with the 'smaller is better' theme that appears to run through the market of late, as home-related operating costs rise strongly, and a slowing economic growth rate, coupled with rising personal tax rates, constrains the growth in household disposable income," he explained.
The year-on-year growth rate in FNB's Sectional Title Market Strength Index, peaked at 10.2% in the first quarter of 2014, whereas the Full Title Market Strength Index peaked at a lower 5.2% growth rate.
Read the full article here - http://www.fin24.com/Economy/Sectional-title-market-stronger-than-full-title-homes-20150720