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May 2016
Housing
T
his has continued into 2016,
with an increase in prices
in this category of 9,4%.
During 2015, this category recorded
an increase of 7% – compared to the
national average of 5,8%.
However, within the affordable
sector – defined by Lightstone as
homes valued at under R250 000 –
house prices have risen by a stagger-
ing 28,5% during the first 10 months
of 2015.
AndrewGolding, Chief Executive of
Pam Golding Properties group, says
there is robust growth in former town-
ships. The group’s quarterly property
index reports house price inflation in
these areas rose by 10,7% in the third
quarter of last year. This is almost
double the house price inflation rate
recorded by the overall major metro
areas during the same period.
House price inflation in the former
townships has nowoutperformed the
major metros for five consecutive
quarters. Despite the robust growth in
According to the Pam Golding Residential Property
Index, house price inflation in the lower-price
segment of under R1 million has been outperforming
all other price categories since early-2015.
house prices in the former township
areas remains the most affordable
area in the housing market, with an
average estimated house price of
R300 000.
With a young population, a large
portion of whomhave not yet entered
the housing market as potential
buyers, there is still considerable
potential growth. This is likely to
underpin the local housing market
– particularly in the affordable price
bands, during the years ahead.
House prices continue to strength-
en in the Western Cape. During the
course of last year, house price infla-
tion in the Cape accelerated from
8,2% in late-2014 to 10,4% in De-
cember 2015 – bringing the average
for the full year to 9%, which is more
than 3% above the national average.
House price inflation continued to
accelerate in early-2016, with prices
rising by 10,6% above year earlier
levels in January.
Says Golding: “Interestingly, un-
like the other major provinces, in
the Cape the strengthening in house
prices is relatively broadly-based
and is not limited to the lower-price
band, as is the case in both Gauteng
and KZN.
Another regional housing market
which is bucking the national trend
of slowing house price inflation is the
Eastern Cape.
Looking at the overall regional
performance, the Eastern Cape is
showing signs of a slight slowdown –
with total regional unit sales during
the first half of the year declining by
12,6% from year earlier levels. How-
ever, sales within the region’s two
largest metros – Port Elizabeth and
East London – remained relatively
resilient last year.
“It is thus the resilient metro
Affordable hous