Headline Inflation for 2024 projected at 4.5%<\/em><\/figcaption><\/figure>\n\n\n\nAccording to Lightstone, luxury homes are expected to perform better in terms of HPI, with the high scenario for luxury homes predicted to be 4.09%, which is an increase from the achieved HPI of 3.05% at the end of 2023. <\/p>\n\n\n\n
On the other hand, high-value homes are expected to have a 3.2% HPI (1.78% at the end of December 2023), whereas mid-value homes may experience a 3.45% HPI (2.48% at the end of December).<\/p>\n\n\n\n
The mid scenarios are more or less in line with HPI in 2023 and the likely outcome for 2024 and would represent an improvement in each price band over 2023.<\/p>\n\n\n\n
However, according to Investec forecasts, core inflation averaged 4.9% last year and is projected to decrease to 4.6% and 4.5% in 2024 and 2025, respectively.<\/p>\n\n\n\n
This means the value of residential property, on average, will be less at the end of 2024 compared to the start of the year, which is not good news, especially for property investors. <\/p>\n\n\n\n
“Unfortunately, the dampening domestic environmental factors \u2013 load shedding and water outages coupled with difficult socio-economic conditions \u2013 show little sign of short-term improvement and are unlikely to help the residential property market,” said Lightstone. <\/p>\n\n\n\n
Additionally, after the 2024 budget announcement in February, property commentators expressed concerns over the end of solar rebates for residential properties and the transfer duty exemptions.<\/p>\n\n\n\n
While relieved that property taxes remained unchanged, industry stakeholders expressed regret that the transfer duty exemption threshold was not increased from R1.1 million to boost activity.<\/p>\n\n\n\n
Lightstone data shows that most first-time buyers look to buy in the R700,000 to R1.5 million price bands.<\/p>\n\n\n\n
\n\n\n\nRead: Cape Town\u2019s luxury property market vs the most expensive cities in the world<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Lightstone’s House Price inflation forecast for 2024 shows residential property prices are likely to fall sort to inflation.<\/p>\n","protected":false},"author":92,"featured_media":703959,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[7421,853],"class_list":["post-757505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-lightstone","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/757505","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\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=757505"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/757505\/revisions"}],"predecessor-version":[{"id":757623,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/757505\/revisions\/757623"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/703959"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=757505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=757505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=757505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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