|
 The
real estate market showed further signs of recovery with an uptick in
property sales last month and rentals this month.
Absa's house price index shows the average nominal value of small, medium
and large houses rose 15.2% year on year last month. This resulted in
an average house price of about R1.08-million in the middle segment after
14% growth in April.
Absa senior property analyst Jacques du Toit said: "Continued strong
growth in the average value of smaller and more affordable housing is
believed to be related to affordability issues.
"After a marked improvement in the affordability of housing over
the past two years on the back of house price and interest rate trends,
housing affordability appeared to have turned around in late 2009."
FNB's house price index for last month shows price inflation rising to
11.9% from April's 10.1% year-on-year growth.
FNB home-loans strategist John Loos says this stemmed from the 5.5 percentage
point drop in interest rates since June 2008.
"But one must start to mention the contribution of an economy that
is once again growing positively, and which in turn translates into somewhat
stronger wage bill growth," he said.
Trafalgar's June rental index reflects a 7% rise in the nine months to
March, but this was still less than the 11.2% rise for the year to last
June and six-year annual trend of 10% since the start of the index in
2003.
"Once again property is showing its steady, compound returns for
investors," said Trafalgar chief executive Andrew Schaefer. "The
latest index covers the worst recession South Africans have experienced
since the 1980s, yet on average rents rose in all cities."
Johannesburg and KwaZulu-Natal rental rates rose 4.25% compared with
the 4.8% inflation rate. East London, at 14.3%, outperformed the rest
of South Africa in the latest measuring period and the compound rental
growth of 13% a year over six years.
"Households that would normally buy have been forced by poor affordability
and high household debt to rent rather than buy," said Schaefer.
"This has underpinned the rental market. We have few empty flats
in our portfolio."
|
Newsletter:
25 May 2012 2012 to 1 June 2012 - Dullstroom, Mpumalanga, South Africa
