But in many other countries, we have seen house prices rocket?
A: Activity is propelled by lower interest rates, attractive market pricing, lower transfer duties and the changing housing needs due to the pandemic.
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The improved affordability made buying property more attractive than renting. In part, this explains the rising vacancy rates and subdued rental escalations, as landlords struggle to hold on to quality tenants.
Another explanation is that job losses were more prevalent in low-paying occupations and for those employed on a non-permanent basis, who would generally not afford to buy property. Thus, the impact of the pandemic is more visible on the rental market than on home-buying market. – Siphamandla Mkhwanazi, FNB senior economist