Property Barometer
Category Market News
The Western Cape continued to have by a significant margin the fastest average house price growth in the 2nd quarter of 2017, compared to the rest of the country’s major residential regions.
However, mounting affordability challenges in that province, caused by its noticeably superior house price growth compared to other regions in recent years, are believed to be behind the slowing in its house price growth. The slowing average house price growth in the Western Cape started early last year, and continued into the 2nd quarter of 2017.
Viewing the period from the beginning of 2010 to the 2nd quarter of 2017, the Western Cape has had 79.9% cumulative house price growth, followed by 49.2% in KZN and 41.7% in Gauteng. The Eastern Cape has had 38.7%, and the 5 Smaller Provinces have recorded 37.2%
A combination of high per household income but significantly lower house prices than the Western Cape makes Gauteng the most affordable major housing region, with the lowest Average House Price/Per Household Income.
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Author: FNB John Loos
