What a R5 million apartment looks like in South Africa vs Australia, New Zealand, the Netherlands, Portugal
House prices across the world are under pressure as central banks attempt to rein in inflation, says global property firm Knight Frank.
The group’s latest Global House Price Index showed that global house prices declined to 3.6% in the twelve months to Q1 2023 – down from 5.7% in the previous quarter.
The index tracks the annual percentage change in nominal price growth.
According to Knight Frank, South Africa is ranked 31st out of the 56 listed countries, with a nominal increase of 2.2% increase over the last 12 months.
Turkey reported the biggest increase at 132.8% over the past year, while South Korea saw a 15.7% decrease.
Domestically interest rates have increased the cost of paying off large assets such as home bonds, with the repo rate currently sitting at 11.75%.
In May, the South African Reserve Bank (SARB) raised interest rates by 50 basis points. SARB governor Lesetja Kganyago cited persistent high inflation and a sluggish economy worsened by power outages as reasons for further policy tightening.
The move marked the tenth-rate hike since November 2021, totalling 475 basis points, reaching the highest level in 13 years due to the global financial crisis.
If rates were to increase again, a person would pay the following amount on an R5 million home:
- 25 basis point increase: R55,054 per month, up R869
- 50 basis point increase: R55,928 per month, up R1,743
- 75 basis point increase: R56,807 per month, up R2,622
- 100 basis point increase: R57,691 per month, up R3,506
The table below illustrates the change in house prices across the board:
BusinessTech looked at what R5 million gets you in South Africa and in some of the popular cities around the globe:
South Africa
2 Bedroom Apartment / Flat for Sale in Rosebank – R4,950,000
2 Bedroom Apartment / Flat for Sale in Vredehoek, Cape Town – R4,995,000
Australia
1 AUS dollar = R12.63
1 Bedroom Apartment for Sale In Brunswick East, Melbourne
AUS 395,877 – R4,925,762
1 Bedroom Studio for Sale in Sydney
AUS 385,000 = R4,862,611
Netherlands
1 EUR = R20.65
R5 million = EUR 241,914.73
Apartment For Sale in Eindhoven – R4,650,000
Apartment For Sale in South Holland – R4,939,757
New Zealand
1 NZD = R11.73
NZD = 426,102.80
2 Bedroom Apartment for Sale in Auckland – R4,447,283
1 Bedroom Apartment For Sale in Canterbury – R5,045,730
Portugal
1 EUR = R20.65
R5 million = EUR 241,914.73
2 Bedroom Apartment For Sale in Lisbon – R5,110,531
2 Bedroom Apartment For Sale in Ameijeira – R4,965,698
Read: What you can get for R5 million in South Africa vs Australia
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