Dramatic fall in rand fails to attract more foreign buyers to South Africa
House prices in South Africa are declining again, after a gradual price rise in 2014.
The house price index for medium-sized houses rose by 3.9% y-o-y to November 2015, according to ABSA. However when adjusted for inflation, the average house price actually fell by 0.8% - a slowdown from the 9.2% (3.2% in real terms) y-o-y price increase during the same period last year.
Small-sized houses rose least, their prices up only 1.8% (-2.8% in real terms) y-o-y to November 2015. Large-sized houses, on the other hand, rose by 8.3% (3.4% in real terms) y-o-y.
In November 2015:
"Nominal house price growth of 5%-6% is forecast for 2016, with the risk to the downside against the background of economic and consumer sector trends and prospects...real house price growth is expected to remain under severe pressure in the next 12-18 months," says ABSA.
