National house price inflation is 5.2% as at the end of August 2016, according deeds office statistics gathered by property research company, Lightstone Property.
“Looking at the four major provinces it is evident the market has been slowing down over recent months,” the company said in a statement. “This is more pronounced in the Western Cape with KwaZulu-Natal and Gauteng joining the trend. Despite the slowdown in the Western Cape it still comes out on top with a rate of 7.8%. Buoyant growth is still observed in Gauteng metros with Ekurhuleni, City of Tshwane and City of Johannesburg growing at rates between 4% and 6%. While property inflation in Nelson Mandela Metro has been slowing down to a rate just below 4% over the past few months, Ethekwini (7%) and City of Cape Town continued growing exuberantly with City of Cape Town showing an unrivalled growth well above 10% per annum. The low- and mid-value housing bands continue to buck the trend by growing at more than 8% annually while the high- and luxury-value segments are inflating closer to 3% per annum.”
Freehold property has dropped from 6% to just over 4% year-on-year, while the sectional title market is keeping pace with national price inflation.