FNB’s House Price Index for the second quarter of 2016 shows what the average house costs in South Africa’s most populous provinces.
According to the FNB property strategist, John Loos, the Western Cape is the only region in the country that has effectively “bucked the trend” on average house price growth, combining economic opportunity and a good lifestyle to boost confidence among investors.
For the entire 2nd quarter of 2016, the national average house price inflation rate was 7.1% year-on-year, up from 6.4% in the 1st quarter, FNB said.
By comparison, the Western Cape Province saw a far higher 12.1% year-on-year house price inflation, up further from 11.4% in the 1st quarter, and representing the 5th consecutive quarter of acceleration, it said.
Of the major provinces, Gauteng’s house price growth also showed a very slight 2nd quarter acceleration, but off a very low base, from 3.9% year-on-year in the 1st quarter of 2016 to 4.1% in the 2nd quarter.
The other 2 major provinces, namely KZN and Eastern Cape, both showed slower house price growth in the 2nd quarter compared to the 1st quarter, to the tune of 4% and 5.3% respectively.
The FNB “Smaller 5 Provinces” showed the slowest growth of 1.8% year-on-year in the 2nd
quarter of 2016.
Average house prices
Looking at the average value of home transactions, the Western Cape came out top with an average at R1.386 million in the 2nd quarter, followed by Gauteng with R1.053 million and KZN with R1.019 million.
- Western Cape – R1.4 million
- Gauteng – R1.05 million
- KwaZulu Natal – R1.02 million
- Eastern Cape – R850,761
- Other 5 provinces – R815,408
Across all of the major metros, the City of Cape Town was the only region to experience double-digit growth in price inflation in the quarter at 15.7%, followed by Tshwane at 6.7%.