{"id":674057,"date":"2023-03-20T17:00:55","date_gmt":"2023-03-20T15:00:55","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=674057"},"modified":"2023-03-20T15:31:26","modified_gmt":"2023-03-20T13:31:26","slug":"prices-for-these-properties-in-south-africa-are-rising-much-faster-than-the-rest","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/674057\/prices-for-these-properties-in-south-africa-are-rising-much-faster-than-the-rest\/","title":{"rendered":"Prices for these properties in South Africa are rising much faster than the rest"},"content":{"rendered":"<p>Recent data from property analytics group Lightstone shows that property inflation in certain provinces has outpaced others.<\/p>\n<p>According to its latest residential property indices, the current annual property inflation rate is at 2.51%, and monthly is equivalent to 0.12%.<\/p>\n<p>Lightstone said that annual property inflation remained steady in the Free State, KwaZulu-Natal and Mpumalanga.<\/p>\n<p>Limpopo and the North West saw an increase in property inflation, whereas in the Eastern Cape, Gauteng, the Northern Cape and the Western Cape saw a decrease.<\/p>\n<p>Across various valuation segments, Lightstone reported that Low-Value residential property, yet again, exhibits the highest annual inflation at 10.2%.<\/p>\n<p>By comparison, the mid-value residential property is only sitting at 3.4%, still the second highest segment.<\/p>\n<p>High-value property owners are experiencing residential property inflation at 2.7%, on par with the national average, while the luxury sector is experiencing residential property inflation at 1.7%.<\/p>\n<p>Lightstone bases its segments on the following property values:<\/p>\n<ul>\n<li><strong>Luxury:<\/strong> More than R1.5 million<\/li>\n<li><strong>High Value:<\/strong> Between R700,0000 to R1.5 million<\/li>\n<li><strong>Mid Value:<\/strong> Between R250,000 to R700,000<\/li>\n<li><strong>Low Value:<\/strong> Less than R250,000<\/li>\n<\/ul>\n<p>Since 2017, the Low-value segment has experienced higher inflationary ranges, peaking at 11.4% in 2021.<\/p>\n<p>To gather inflationary figures, Lightstone applies the repeat sales methodology when reviewing and reporting on property data. Lightstone&#8217;s repeat sales indices offer a means of measuring the genuine price inflation of homes that have been sold twice within a specific timeframe.<\/p>\n<p>The graphs below show residential inflation metrics across the various value segments:<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Luxury-property-inflation.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-674087 aligncenter\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Luxury-property-inflation.png\" alt=\"\" width=\"1341\" height=\"334\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Luxury-property-inflation.png 1341w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Luxury-property-inflation-300x75.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Luxury-property-inflation-1024x255.png 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Luxury-property-inflation-768x191.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Luxury-property-inflation-1200x299.png 1200w\" sizes=\"auto, (max-width: 1341px) 100vw, 1341px\" \/><\/a> <a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/high-mid-low-property-inflation.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-674089 aligncenter\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/high-mid-low-property-inflation.png\" alt=\"\" width=\"1328\" height=\"758\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/high-mid-low-property-inflation.png 1328w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/high-mid-low-property-inflation-300x171.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/high-mid-low-property-inflation-1024x584.png 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/high-mid-low-property-inflation-768x438.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/high-mid-low-property-inflation-1200x685.png 1200w\" sizes=\"auto, (max-width: 1328px) 100vw, 1328px\" \/><\/a><\/p>\n<p>Looking at different provinces, Limpopo has the highest residential property inflation at 8.6%, according to the latest data (October 2022). Mpumalanga came in second at 6.4%.<\/p>\n<p>The illustration below shows the various inflationary rates across the provinces:<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/regional-map.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-674079 aligncenter\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/regional-map.png\" alt=\"\" width=\"708\" height=\"541\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/regional-map.png 708w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/regional-map-300x229.png 300w\" sizes=\"auto, (max-width: 708px) 100vw, 708px\" \/><\/a><\/p>\n<p>Addressing the country&#8217;s major metros, reflecting their provincial position at 8.0% Nelson Mandela Bay had the highest residential price inflation. The City of Johannesburg also had the lowest at 1.2%:<\/p>\n<ul>\n<li><strong>Nelson Mandela Bay:<\/strong> 8.0%<\/li>\n<li><strong>Ekurhuleni:<\/strong> 3.9%<\/li>\n<li><strong>City of Cape Town: <\/strong>3.3%<\/li>\n<li><strong>Ethekwini:<\/strong> 3.4%<\/li>\n<li><strong>City Tshwane:<\/strong> 2.9%<\/li>\n<li><strong>City of Johannesburg:\u00a0<\/strong>1.2%<\/li>\n<\/ul>\n<p><strong>Property buyers<\/strong><\/p>\n<p>The founder of Meridian Realty, Antonie Goosen, said that South African residential buyers are remaining prudent so far this year.<\/p>\n<p>With eight consecutive interest rate hikes &#8211; and another expected at the end of this month &#8211; prospective homebuyers may choose to rent instead.<\/p>\n<p>Goosen said rental demand is currently high as only buyers in the upper segment market can buy a property in light of the economic situation.<\/p>\n<p>Increasing interest rates have affected first-time buyers and those looking to buy in the lower to middle price range. As a result, they are now reconsidering their decision to invest in real estate, Goosen said.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/674009\/sars-has-a-new-way-to-get-in-contact-with-taxpayers\/\" target=\"_blank\" rel=\"noopener\">SARS has a new way to get in contact with taxpayers<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Property analysts Lightstone show how inflation is shaping up regarding residential property .<\/p>\n","protected":false},"author":10,"featured_media":654233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[26,7421],"class_list":["post-674057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-headline","tag-lightstone"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/674057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=674057"}],"version-history":[{"count":11,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/674057\/revisions"}],"predecessor-version":[{"id":674147,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/674057\/revisions\/674147"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/654233"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=674057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=674057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=674057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}