This takes the household net wealth to seven billion from 644 billion during 2013, a study by Momentum and Unisa has established.
“The double digit percentage increase in households’ net wealth can be ascribed to the value of household assets increasing at a higher rate than liabilities and household assets being five times more than household liabilities,” noted Momentum Unisa Household Wealth report.
The Momentum Unisa report also estimated the value of household assets to have increased by 9.9 per cent in the fourth quarter of 2013 to eight billion rand compared to 2012’s fourth quarter.
(READ MORE: Momentum Africa equity fund 3rd best performing unit trust)
“The driving force behind the increase in household liabilities was the “other debt” category that includes outstanding unsecured loans, which, according to the National Credit Regulator, were 7.2 per cent higher at the end of the fourth quarter in 2013 compared to 2012.”
“The increase in the value of household assets was driven by financial assets, which were 11.6 per cent higher in the fourth quarter of 2013 compared to a year before.”
Financial assets were spearheaded by the value of households’ interest in retirement funds and long-term insurers, which increased by 11.8 per cent over the year up to fourth quarter of 2013.
Apart from outpacing inflation, household net wealth increased faster than the combined increase in prices and in the number of households.
Real net wealth per household was two per cent higher at over 200,000 in the fourth quarter of 2013 compared to the same comparable period in 2012.
The report also posited that South African household net wealth increased faster than consumption price inflation.