The downward trend in nominal year-on-year house price growth in the middle segment of the South African residential property market continued up to the end of 2015.
Real year-on-year middle-segment house price growth was also lower due declining nominal price growth and trends in inflation. Price growth in the affordable segment improved further in 2015 after some higher growth in 2014 compared with the preceding year. The segment for luxury housing showed a declining trend in nominal and real price growth during last year, with full-year growth down on that of 2014.
The general outlook for nominal house price growth is to remain in the single digits for the next two years, with the risk for price growth to the downside against the background of trends in and prospects for the economy and the household sector. Based on expectations for nominal house price growth and consumer price inflation in 2016 and 2017, real price deflation is projected over the 2-year period.
Read more here: Housing Review 2016 Q1