{"id":680469,"date":"2023-04-15T17:00:20","date_gmt":"2023-04-15T15:00:20","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=680469"},"modified":"2023-04-14T17:21:37","modified_gmt":"2023-04-14T15:21:37","slug":"the-average-house-price-in-south-africa-and-what-you-can-get-in-major-cities-across-the-country","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/680469\/the-average-house-price-in-south-africa-and-what-you-can-get-in-major-cities-across-the-country\/","title":{"rendered":"The average house price in South Africa – and what you can get in major cities across the country"},"content":{"rendered":"

The South African housing market is slowing down due to lower demand caused by a weak economy, the higher cost of living and rising interest rates, with the average house price showing minimal growth.<\/p>\n

The latest Rode\u2019s Report on the South African Property Markets for 2023 said that nominal prices grew by 2.5% in the first two months of 2023 compared to the first two months in 2022, citing data from FNB.<\/p>\n

The report said that this shows a slowdown after growth of 4,2% in 2022.<\/p>\n

House-price growth has\u00a0 gradually weakened since the 2020\/21 boom, which was made possible by the major dropping in the prime interest rate to 7%.<\/p>\n

However, the South African Reserve Bank has continually lifted short interest rates by 4.25% since November 2021 to fight inflation.<\/p>\n

Thus, the prime interest rate stands at 11.25%, which is higher than the pre-pandemic level of\u00a0 10%.<\/p>\n

The monthly mortgage instalments for a R1 million property over a 20-year have risen from R7,752 to R10,492, an increase of R2,700 per month.<\/p>\n

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Most metros in South Africa saw substantial growth in prices in 2020\/2021 due to record-low interest rates, however, price growth started to slow down in most major metros.<\/p>\n

In Johannesburg, the worst-performing metro, house prices grew by 0.8% from November 2021 to November 2022.<\/p>\n

Despite the Western Cape being perceived as the strongest of the major provinces, Cape Town only showed year-on-year (YoY) price growth of 3.3% in November 2022.<\/p>\n

eThekwini, Durban’s Metro, also only showed growth of 3.7%, down from growth of 4.3% in 2021.<\/p>\n

Nelson Mandela Bay was the only metro where house price growth did not slow down in November 2022, with it even beating inflation. \"\"<\/a><\/p>\n

The most recent data from the Oobarometer said that the average house price in South Africa was R1,422,992<\/strong> for Q4 2022.<\/p>\n

This mark only shows 1.5% growth from Q3 2022 and 2.4% YoY growth from Q4 2021.<\/p>\n

The Rode’s Report predicts that nominal house prices to grow at a slower rate in 2023 and 2024, citing the weak economy, high unemployment, load shedding and increasing interest rates as reasons.<\/p>\n

What the average house price can buy in Johannesburg, Cape Town, Durban and Gqeberha are listed below:<\/p>\n

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