Research conducted by FNB\u00a0shows the average house price\u00a0in South Africa right now, across low, middle and high income areas.<\/p>\n
The report is based on deeds data from South Africa’s 6 major metros – Tshwane, Joburg, Ekurhuleni, Ethekwini, Nelson Mandela Bay and Cape Town, and considers the number of natural person transactions over the course of 2016.<\/p>\n
All commercial buyers and businesses are excluded from the report.<\/p>\n
The statistics are primarily aimed at “value preservation” (current owners and potential sellers) with an emphasis placed on how much house prices have increased over the past year.<\/p>\n
Value Band<\/strong><\/th>\n| Average House Price 2017<\/strong><\/th>\n<\/tr>\n | Upper Income Areas<\/td>\n | R2 892 000<\/td>\n<\/tr>\n | Middle Income Areas<\/td>\n | R1 517 000<\/td>\n<\/tr>\n | Lower Middle Income Areas<\/td>\n | R952 964<\/td>\n<\/tr>\n | Low Income Areas<\/td>\n | R503 305<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n | “These prices\u00a0point to a continuing trend in the high-end of the market being slightly weaker\u00a0than the more affordable metro areas. This is to be expected given the country’s\u00a0constrained, but not stressed, economic and financial times,” said FNB household and property sector strategist, John Loos.<\/p>\n With interest rates having risen, high net worth individuals\u2019 investment incomes have likely slowed in recent years. Municipal rates and utilities tariffs are also rising sharply especially for higher end home owners, and effective personal tax rates being ratcheted up in a \u201cno growth\u201d economy, it is not surprising to see the Middle and Upper Income Area Segments\u2019 average house price growth being the slowest at 3.2% and 2.7% respectively.<\/p>\n As a result, both of these segments\u2019 price inflation rates have slowed from having had the two highest rates of the four segments back in 2014.<\/p>\n On a year-on-year basis, FNB recorded\u00a0that the Low Income Area House Price Index showed the strongest growth, and actually had accelerated mildly through 2016, recording 6.7% year-on-year for the 4th quarter of 2016 compared with the previous quarter\u2019s 6.5%.<\/p>\n The most \u201csteady growth\u201d area value band in recent years, however, has been the Lower Middle Income Area House Price Index, recording the 2nd highest average price increase of 6.4% in the 4th quarter, an increase from the previous quarter\u2019s 5.7%.<\/p>\n \n |
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