This is what the average house price in South Africa gets you in Joburg, Cape Town and Durban

·13 Aug 2023

With South Africans battling high interest rates, the average selling price in South Africa has dropped.

According to the latest ooba Home Loans oobarometer, the average house price in South Africa dropped by 0.4% from R1,431,712 in Q2 2022 to R1,426,656 in Q2 2023.

The average house prices for first-time homebuyers also dropped by 2.6% from Q2 2022’s R1,150,256 to R1,120,173 in Q2 2023.

“This is in reaction to the rapid rise in interest rates – which climbed 475 basis points since the start of the rates hike cycle in November 21, resulting in weakening demand for property,” said ooba Home Loans CEO Rhys Dyer.

Although the property price decline is a positive for new homebuyers, an end to the current interest are hiking cycle is required to stimulate residential property and stabilise the market.

“The recent decision by the South African Reserve Bank to leave the interest rate unchanged is a great news for the property sector, with an expectation that we have reached the top of the cycle and that the next interest rate movement will be downwards,” Dyer said.

Not out of the woods

Dyer may be optimistic, but South Africans should not be surprised if the South African Reserve Bank continues to hike interest rates.

Following the recent pause, SARB Governor Lesetja Kganyago said that further rate hikes are on the cards depending on what happens with inflation.

Despite Consumer Price Inflation dropping from 6.3% in May to 5.4% in June – within the SARB’s target range of 3% to 6% – there are still concerns that it could start ticking upwards again.

With interest rates already at a 14-year high, here is a list of properties on the market at the average house price in South Africa: