South Africa’s national house price inflation index sat at 4.0% at the end of November 2017.
Over the previous months, the majority market activity has stabilized in the 3% – 8% range following a slowdown in recent months (as shown by the provincial indices). This is true for most of Lightstone’s indices except for the Free State and their two top tiers; the Western Cape and the North West Province. The Free State is still slowing down and lagging with a 1.7% inflation rate whilst the top tiers are currently growing to 10.4% and 21.4% for the Western Cape and the North West province respectively.
The inland municipalities, Ekurhuleni, City of Tshwane and City of Johannesburg metros are growing at a stable pace, between 2% and 4% whereas the coastal municipalities are performing above this range. This relationship extends to all coastal and inland properties as shown by their respective indices.
Both the ‘Low Value’ and ‘Mid Value’ wealth segments continue to ‘buck the trend’ by growing at more than 7% annually. The ‘High’ and ‘Luxury’ wealth segments are inflating at rates below 3% with the ‘Luxury’ inflation testing the 0% rate.
Read more here: Lightstone Residential Property Indices – December 2017