|
Strong demand in South Africa can't prevent falling
price growth
A new Trafalgar Inner City Report for 2005 shows that
in South Africa's inner-city areas at least, demand
for accommodation is growing and keeping the market
buoyant.
However the Absa House Price Index, released in this
month, showed that in September nominal year-on-year
house price growth of 17.6% was recorded. This was the
slowest since December 2002, when it was 17.3%.
According to the latest Absa report, "nominal
house price growth of around 21% is projected for the
year, compared with growth of more than 32% recorded
in 2004.
"The affordability of housing, taking into account
house price, income and interest- rate trends, will
remain an important factor over the next 12 months,
especially for first-time and low- to middle-income
home buyers. In 2006, nominal house price growth of
5% to 10% is expected."
|
