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Buoyant house prices

Though the residential market continues to be buoyant as a result of healthy consumer fundamentals and relatively low interest rates, data collected from the Deeds Office suggests that the recent growth in both nominal and real terms of house prices could be levelling off. Existing house prices have increased much faster than new house prices have, but this does not mean that an existing house is more expensive than a new house.

Yet despite the increases, South Africa's household debt to income ratio is still relatively low which means home owners still have scope to increase their debt and buy more expensive homes. Generally the outlook for house prices continues to be optimistic owing to a combination of persistent low interest rates and accelerated economic growth. The only caveat to this sanguine outlook is the persistently high and volatile international price of oil. See External Shocks.

Standard Bank residential property note

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