House prices have for the third month in a row continued their downward growth trend. This is according to Lightstone’s national house price inflation index, which recorded growth of 3.8% at the end of July 2018.
“The market is currently ranging in the 2% to 5% zone following a slow-down in recent months as shown by the provincial indices,” reads the Lighstone report. “This is true for most of our provinces, except the Western Cape and Northern Cape; the Western Cape is currently growing at an unmatched annual rate of 9.9% and the Northern Cape is on the other extreme end with a growth rate of 1.1% per annum. The inland municipalities Ekurhuleni, City of Tshwane and City of Johannesburg metros are growing stably at rates between 2% and 5% whereas the coastal municipalities are generally performing above this range. This relationship extends to all coastal and inland properties as shown by their respective indices.
“Both the low-value and mid-value wealth segments continue to buck the trend by growing at more than 6% annually, while the high- and luxury-wealth segments are inflating at rates below 4%.”