S. African Residential Property Market To Gather Momentum In 2010: Absa

South Africa's residential property market is expected to gather momentum in 2010, a report from Absa Group showed Tuesday. Growth in the nominal value of houses is expected to be around 6% in 2010 compared with 2009.

The average nominal value of homes for which Absa approved mortgage finance increased further in February, with small, medium and large categories of housing, recording a positive nominal annual rise in values. In real terms, house prices were still lower in February compared with a year ago.

Cost of medium-sized houses rose 2.2% on a yearly basis in February, larger than the revised 1% nominal growth in January. This brought the average nominal value in this segment to a level of around ZAR 953,600 in February.

At the same time, the average nominal value of small houses climbed at a faster pace of 1.6% annually, following a 0.7% rise in January. And cost of large houses were up 3.3% compared to 3.1% in the previous month.

Article by: www.rttnews.com