Decline in house growth in first quarter: Absa Johannesburg, June 2 (I-Net Bridge) Nomina

By Staff Writer

Nominal and real house price growth slowed down further in the first quarter of 2008, largely as a result of the tightening of monetary policy, stricter requirements for credit extension, and housing having become less affordable, according to the
latest Absa housing review.The average nominal price of affordable housing increased by 13.8% year-on-year (y/y) to 277,000 rand on average in the first quarter of 2008 (18.2% y/y in the preceding quarter). Real price growth came to 3.5% y/y in the first quarter of the year, down from 9,0% y/y in the fourth quarter of last year.

Nominal price growth of 9.5% y/y was recorded in middle-segment housing in the first quarter of 2008 (12,4% y/y in the fourth quarter of 2007), causing the average price of a house in this market segment to come to about 976,000 rand. In real terms, prices dropped by 0,3% y/y in the first quarter of 2008 (+3.7% y/y in the final quarter of 2007).


In the luxury segment of the market, house prices increased by a nominal 6.7% y/y to about 4.2 million rand in the first quarter of 2008 (7.6% y/y in the preceding quarter). The average price of houses in this category dropped by a real 2.9% y/y in the first quarter, compared with a decline of 0.8% y/y recorded in the fourth quarter of 2007.


At a provincial level, nominal year-on-year house price growth in the middle segment of the market varied between 17.4% y/y and 0.6% y/y in the first quarter of 2008.In the country's major metropolitan areas, nominal growth in house prices of between 19.4% y/y and 1.0% y/y was recorded in the first quarter of the year.Nominal growth in house prices along the coast varied between 21.6% y/y and 9.6% y/y in the first quarter of 2008.

I-Net Bridge, Tel: +27-11-280-0735, newsdesk@inet.co.za
Copyright 2008 I-Net Bridge. All rights reserved


Recent Articles

Featured Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

3 Vehicle financing options compared – which is cheaper?

Buying a car is a considered a milestone, both in life and financially. Unless you’re able to fork out the cash, many opt for financing. But often the excitement to drive it off the showroom floor overshadows the need to check if you’re choosing the most-suited option. To help you make the best-informed decision we compare available vehicle financing structures in South Africa.

Read more

Splitwise: Split the bill not the friendship

Collecting your friends’ debt to you can be draining. You don’t want to ruin your friendship with them, and it can also be extremely awkward. I don’t know how many times I have written, deleted, and rephrased texts, reminding people to pay what is due to me.

Read more

Stokvel-friendly accounts – which one is fair?

The stokvel economy is approximately worth R49 billion in South Africa. This is according to the National Stokvel Association of South Africa (Nasasa). Altogether 24% of these stokvels are in Gauteng, while only 6% are in the Western Cape.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Save with 10X investments

Price: Free
When: Until 30 June
Where: Online

Sanlam Cumulus Investment Plan Limited Offer

Price: From R2,500
When: Limited Period
Where: Nationwide

Roman's Pizza Special-Single Large Pizza

Price: R69.90
When: Until 31 July
Where: Nationwide