Prices in the affordable housing market in South Africa have grown by 14% year on year, whilst other segments have grown by 7-9%, according to Lightstone.

Speaking at the recent Rode Property Conference in Stellenbosch, Anthony Miller, MD of Lightstone, said: "The market has improved substantially over the last 12 months, but the market is still good for bargain hunters. Things are starting to turn and I believe we have seen the worst of it."

The main reason according to Miller is that many investors and homeowners are selling their more expensive bonded homes, with some excess equity, and buying cheaper houses for cash or substantially reduced bonds. And although there is still a great deal of distress in the market, opportunities abound for investors.

He noted that Sales in Execution (SIE) are reaching record highs for the last ten years, although banks are trying hard to assist distressed homeowners, with any other mechanism being preferable to SIE. 30% of SIE notices result in a forced sale, this number was at 9% in the year 2000 and 23% in 2005. Properties in possession (pips) are below historical highs and auction clearance sales are reaching record levels.

Miller said: "There is a lot of creative work being done by banks to avoid SIE, preferring to weather the storm and who trying to keep people in their homes."