RESIDENTIAL PROPERTY TRENDS IN SOUTH AFRICA

Background

The FNB House Price Index is a monthly report that looks at the rate of change in residential property prices as well as the current average house price.

The graph below plots the year-on-year growth rate of residential properties since January 2002.

The FNB House Price Index clearly illustrates the residential property boom experienced during 2004 and 2005, where house prices rose by over 30% year-on-year. Following that, the credit crunch and subsequent recession actually caused property prices to drop during late 2008 and 2009. This was the first period of ‘negative growth’ recorded by the FNB House Price Index.

The South Africa property market has since recovered and forecasts from FNB’s property analysts point to a steady, gradual recovery.

The data used to produce this report is sourced from properties that have an FNB home loan registered over them.

Below is a recent interview about the March 2012 FNB House Price Index with John Loos, property strategist for FNB Home Loans.