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Down to a crawl

South African house prices rose an annual 6.5 percent in June, the slowest pace of growth in almost three and-a-half years, according to the July Standard Bank Residential Property Gauge. Two features of the slowdown are noteworthy:

  • The slowdown is uneven across the different market segments, with luxury houses slowing down faster and affordable houses gaining popularity; and
  • Low capital gains prospects combined with a moderation in rental growth has reduced the allure of the property market for investors.
According to Standard Bank economist, and one of the authors of the gauge with Gina Schoeman, "in the short term, there should be limited or no growth in house prices".

Standard Bank Residential Property Gauge

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