The value of property in South Africa have been declining since 2011, and this house price deflation has continued into March 2012, that’s according to the April ABSA House Price Index.
According to ABSA’s senior property analyst, Jacques du Toit, the average prices of:
- Small Houses (80 – 141 sqm) declined by 19.1% to R620 700
- Medium-sized Homes (141 – 220 sqm) declined by 0.6% to R961 600
- Large Homes (221 – 400 sqm) declined by 0.4% to R1 476 00
“The latest trends in house prices are believed to be a reflection of macroeconomic developments and property-related factors such as running costs, impacting household finances. These factors may affect the demand for housing and cause changes in property buying trends, which will impact market activity, price trends in the various segments of the market, and the demand for mortgage finance.”
ABSA also expects the prime interest rate to rise by an added 2% by the end 2013.
Similar: FNB House Price Index