The average house price in Cape Town vs Joburg
The average price for a property in the Western Cape is almost R400,000 more than in the average in the economic powerhouse of Gauteng.
FNB House Price Indices for the country’s major regions however, showed slowing price growth in the country’s top performing region, the Western Cape, continued in the second quarter of 2017.
The year-on-year average house price growth for the Western Cape measured 5.7% in the second quarter, slower than the 6.9% revised rate of the previous quarter and now significantly slower than the 10.8% revised multi-year high recorded in the first quarter of last year, FNB said.
Despite its slowdown, the Western Cape’s average house price growth for the second quarter remained well above other major regions, the next fastest growth rates being the 2.3% rate for Gauteng and 2% in KZN, the lender said.
“We believe that the time has come for the Western Cape’s housing market to cool off, and indeed the gradually slowing average house price growth rate for that province appears to pointing to such a cooling off emerging,” said household and property sector strategist at FNB Home Loans, John Loos.
This region’s market is the most expensive in South Africa, with an average transaction price estimated at R1.437 million in the 2nd quarter of 2017, the next highest average price being that of Gauteng at an estimated R1.050 million.
Viewing the period from the beginning of 2010 to the second quarter of 2017, the Western Cape has had 79.9% cumulative house price growth, followed by 49.2% in KZN and 41.7% in Gauteng.
The Eastern Cape has had 38.7%, and the five smaller provinces have recorded 37.2%, FNB said.
Read: Salaries in South Africa: the gap between Joburg vs Cape Town vs Durban
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