Absa bank released a report earlier this month that shows May saw minimal year-on-year growth in the average value of homes in the middle segment of the South African housing market, remaining relatively stable and in line with average price growth of between 8% and 9% during the past nine months. Base effects, however, continued to be an important factor driving price growth on a segment basis. 

The report states that headline consumer price inflation averaged 6 percent y/y in the first four months of the year, and is forecast to remain above this level in the rest of the year. “The property market is sensitive to inflation, so if inflation remains relatively the same then the confidence of buyers and sellers to transact will remain unchallenged,” explains Clare Putsman, Director of Cape Waterfront Estates.

Absa states that the average nominal value of small homes was R837 200, medium-sized homes R1 146 800 and large homes R1 780 200.

“Economists are suggesting that with expected rise in interest rates, the South African economy may head for recession. It is therefore imperative that home owners make sure they get a full Comparative Market Analysis (CMA) for their property if they wish to put their house on the market. The CMA prepared by your agent will make sure that the marketing price of their home is correct and ensure a swift sale,” explains Putsman. 

Absa further explains that the housing market will continue to be driven by developments on the economic front, trends in household finances and consumer confidence. 

“South Africa's current economic climate provides property investors with a great opportunity to invest in this market. The weak currency presents a propsect for an investor to save a lot of money on the purchase of a property at this time,” concludes Margie MacKenzie, Director of Cape Waterfront Estates.

For more information about this amazing team visit www.capewaterfrontestates.co.za

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For more information, please contact: 

Margie MacKenzie

T: 083 252 2755 

Clare Putsman 

T:0832522485