Guiding consumers since 2009

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 This is why you should ask your medical scheme for an annual claims statement

Even with a strict budget, a lot can happen in a year and you may lose track of your medical expenses, especially the costs that you cover out-of-pocket. It’s important to regularly assess your medical aid or hospital plan contribution.

Make rewards programmes work for you

Many retailers and financial service providers have introduced rewards programmes, or loyalty programmes, to retain their customers and make them feel appreciated. These programmes can help you save money, but you have to know how to make them work for you.

 

Top 5 things to consider before taking on further credit

Nowadays, the process of attaining credit has become easier and faster. Although applying for, and receiving cash on the same day may excite potential lenders, it doesn’t come without serious repercussions if you’re not wise. 

These factors will fluctuate your car insurance excess

When you take out car insurance, your monthly premium is a given. However, you may also need to pay an excess amount if you claim from your policy. But which factors may increase your excess, and how can you bring it down?

Deals

Get 25% off your stay at Monte Vista Boutique Hotel

Price: Available on request
When: Until 31 January 2021
Where: Montagu

Luxury Spa Package Special for R449 at Aurora

Price: R449
When: Until 31 January 2021
Where: Cape Town

Oyster and Champagne Special at Blowfish Restaurant | JustMoney

Price: R129
When: Daily
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions