People & News

Absa house price index

According to the latest Absa June House Price Index, house price growth is expected to remain positive in both nominal and real terms for the rest of this year and into 2005; the month-on-month annualised price increases have slowed down from the peak of 36,55 recorded in January this year to 17,3% for June.

The declining trend can be attributed to a number of factors:
* Rental market is becoming less attractive;
* Initial impetus of lowered interest rates has worn off;
* GDP growth is expected to slow by the end of 2004;
* Belief that a bubble might be developing; and
* A growth in the supply of new housing stock.

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