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.