{"id":709284,"date":"2023-08-13T15:00:00","date_gmt":"2023-08-13T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=709284"},"modified":"2023-08-13T09:31:35","modified_gmt":"2023-08-13T07:31:35","slug":"this-is-what-the-average-house-price-in-south-africa-gets-you-in-joburg-cape-town-and-durban","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/709284\/this-is-what-the-average-house-price-in-south-africa-gets-you-in-joburg-cape-town-and-durban\/","title":{"rendered":"This is what the average house price in South Africa gets you in Joburg, Cape Town and Durban"},"content":{"rendered":"\n

With South Africans battling high interest rates, the average selling price in South Africa has dropped. <\/p>\n\n\n\n

According to the latest ooba Home Loans oobarometer, the average house price in South Africa dropped by 0.4% from R1,431,712 in Q2 2022 to R1,426,656 in Q2 2023. <\/strong><\/p>\n\n\n\n

The average house prices for first-time homebuyers also dropped by 2.6% from Q2 2022\u2019s R1,150,256 to R1,120,173 in Q2 2023. <\/p>\n\n\n\n

\u201cThis is in reaction to the rapid rise in interest rates – which climbed 475 basis points since the start of the rates hike cycle in November 21, resulting in weakening demand for property,\u201d said ooba Home Loans CEO Rhys Dyer.<\/p>\n\n\n

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Although the property price decline is a positive for new homebuyers, an end to the current interest are hiking cycle is required to stimulate residential property and stabilise the market. <\/p>\n\n\n\n

\u201cThe recent decision by the South African Reserve Bank to leave the interest rate unchanged is a great news for the property sector, with an expectation that we have reached the top of the cycle and that the next interest rate movement will be downwards,” Dyer said. <\/p>\n\n\n\n

Not out of the woods <\/strong><\/p>\n\n\n\n

Dyer may be optimistic, but South Africans should not be surprised if the South African Reserve Bank continues to hike interest rates. <\/p>\n\n\n\n

Following the recent pause, SARB Governor Lesetja Kganyago said that further rate hikes are on the cards depending on what happens with inflation. <\/p>\n\n\n\n

Despite Consumer Price Inflation dropping from 6.3% in May to 5.4% in June \u2013 within the SARB\u2019s target range of 3% to 6% – there are still concerns that it could start ticking upwards again. <\/p>\n\n\n\n

With interest rates already at a 14-year high, here is a list of properties on the market at the average house price in South Africa: <\/p>\n\n\n\n

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