Lightstone Property announced yesterday that annual residential property inflation for October 2015 was recorded at 5.36%, down by 0.21% from the previous month. Lightstone has been reporting that house price inflation in the high value bands has been decreasing.
In October it saw the low value segment join the other value segments with its annual inflation also starting to decline.
Over the past two years house prices in the low value segment increased significantly from 7.97% in August 2013 peaking at 32.59% 24 months later. The decrease in October was expected as the low value property inflation lags national inflation, it said. Lightstone expects inflation in this segment to continue to decrease over the next 12 to 18 months and only start accelerating once national inflation picks up again.
The company defines the luxury value band as greater than R1,5m; the high value band between R700 000 and R1,5m; the mid value band between R250 000 and R700 000; and the low value band as less than R250 000.