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 New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Spur's South African Combo Special

Price: R80
When: Mondays
Where: Nationwide

De'Vara Beauty Spa Monday Madness Special

Price: From R580
When: Mondays
Where: Cape Town

Pepperclub Hotel Summer Sale

Price: R1,701
When: From 23-27 October 2019
Where: Cape Town