The skyline of SA’s financial capital, Johannesburg. (Westend61/ Getty Images)
While Cape Town saw a 6% increase in residential property prices over the past year, Johannesburg experienced a decline due to water and electricity problems, high municipal rates, and governance issues. Statistics SA’s Residential Property Price Index revealed decreases in Johannesburg, Nelson Mandela Bay, and eThekwini Municipality. Cape Town’s prices rose by 30% over five years, compared to Johannesburg’s 8.6% growth.
The overall residential prices in SA increased by 3.5% in the year to March 2024, with Western Cape and North West seeing gains while Northern Cape and Limpopo faced declines. Buffalo City showed the largest price increase. FNB’s survey indicated an increase in property sales due to financial pressures and a slowing trend in upgrading to more expensive homes.
FNB senior economist Siphamandla Mkhwanazi suggested that slower price increases and potential interest rate cuts, along with pro-growth policies, could help revive the housing market.
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