Property prices in these major cities in South Africa have seen the biggest increase
Statistics South Africa (Stats SA) has published new data tracking the change in residential property prices across the country.
In its latest Residential Property Price Index (RPPI) for December 2022 the annual national residential property price inflation was 5.3% in December 2022, down from 5.4% in November 2022.
“The RPPI increased by 0.4% month-on-month in December 2022,” said StatsSA.
StatsSA’s residential property price index (RPPI) records property transactions register with the national deeds office.
RPPI aims to measure the rate at which the prices of residential properties purchased by households change over time, said StatsSA. It measures this rate at national, provincial and metropolitan municipality levels.
“The RPPI excludes out-of-scope transactions and includes transactions where the buyer is an individual, and the seller is an individual, company, estate, foundation or body corporate.”
The group said the main contributors to the annual national property inflation rate of 5.3% were the Western Cape and Gauteng.
“Western Cape increased by 8.0% year-on-year and contributed 2,3 percentage points. Gauteng increased by 2.6% year-on-year and contributed 1.2 percentage points,” reported StatsSA.
The RPPI for all metropolitan areas increased by 3.8% between December 2021 and December 2022. The main contributors to the 3.8% annual inflation rate for metropolitan areas were:
- City of Cape Town – increased by 5.6% year-on-year and contributed 1.6 percentage points.
- Ekurhuleni – increased by 4.8% year-on-year and contributed 0.6 percentage points.
- City of Johannesburg – increased by 2.1% year-on-year and contributed 0.5 of a percentage point.
Overall, Buffalo City saw the biggest increases at 8.3% year on year. Year-on-year increases for the metros were recorded as follows:
- Buffalo City: +8.3%
- City of Cape Town: +5.6%
- Ekurhuleni: +4.8%
- All metros: +3.8%
- eThekwini: +3.5%
- Nelson Mandela Bay: +3.4%
- City of Johannesburg: +2.1%
- City of Tshwane: +1.7%
- Manguang: +0.8%
In a more recent report from StatsSA, comparing property prices currently to those in 2010, the group showed that residential property prices and inflation in the country have increased by 98% since 2010, with Cape Town experiencing the most significant surge at 141%.
It said that since August 2014, property prices in Cape Town have consistently increased at a higher rate than in other metros, with a further surge occurring in 2018 and 2019.
Rising property prices are challenging for everyday consumers and first-time home buyers in South Africa, and on top of increased monthly bond payments as a result of a surprising 50 basis point interest rate hike, they have to contend with persistent load shedding ramping up the price of everyday goods.
The table below shows the residential property price index:
In December 2022, the percentage change compared to the year prior (2021) showed the following changes across national and provincial sectors:
- Mpumalanga: +12.9%
- Limpopo: +12.5%
- North West: +11.6%
- Northern Cape: +10.3%
- Western Cape: +8.0%
- National: +5.3%
- Eastern Cape: +5.0%
- KwaZulu-Natal: +4.1%
- Gauteng: +2.6%
- Free State: +0.6%
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