{"id":702013,"date":"2023-07-09T15:00:00","date_gmt":"2023-07-09T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=702013"},"modified":"2023-07-07T17:01:12","modified_gmt":"2023-07-07T15:01:12","slug":"what-a-r5-million-apartment-looks-like-in-south-africa-vs-abroad-aus-netherlands-nz-portugal","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/702013\/what-a-r5-million-apartment-looks-like-in-south-africa-vs-abroad-aus-netherlands-nz-portugal\/","title":{"rendered":"What a R5 million apartment looks like in South Africa vs Australia, New Zealand, the Netherlands, Portugal"},"content":{"rendered":"\n
House prices across the world are under pressure as central banks attempt to rein in inflation, says global property firm Knight Frank.<\/p>\n\n\n\n
The group’s latest Global House Price Index showed that global house prices declined to 3.6% in the twelve months to Q1 2023 – down from 5.7% in the previous quarter.<\/p>\n\n\n\n
The index tracks the annual percentage change in nominal price growth.<\/p>\n\n\n\n
According to Knight Frank, South Africa is ranked 31st out of the 56 listed countries, with a nominal increase of 2.2% increase over the last 12 months.<\/p>\n\n\n\n
Turkey reported the biggest increase at 132.8% over the past year, while South Korea saw a 15.7% decrease.<\/p>\n\n\n\n
Domestically interest rates have increased the cost of paying off large assets such as home bonds, with the repo rate currently sitting at 11.75%.<\/p>\n\n\n\n
In May, the South African Reserve Bank (SARB) raised interest rates by 50 basis points. SARB governor Lesetja Kganyago cited persistent high inflation and a sluggish economy worsened by power outages as reasons for further policy tightening. <\/p>\n\n\n\n
The move marked the tenth-rate hike since November 2021, totalling 475 basis points, reaching the highest level in 13 years due to the global financial crisis.<\/p>\n\n\n\n
If rates were to increase again, a person would pay the following amount on an R5 million home:<\/p>\n\n\n\n
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25 basis point increase: R55,054 per month, up R869<\/li>\n\n\n\n
50 basis point increase: R55,928 per month, up R1,743<\/li>\n\n\n\n
75 basis point increase: R56,807 per month, up R2,622<\/li>\n\n\n\n
100 basis point increase: R57,691 per month, up R3,506<\/li>\n<\/ul>\n\n\n\n
The table below illustrates the change in house prices across the board:<\/p>\n\n\n
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