The latest house prices are showing a slow down: as of July 2016, national inflation was at 5.2%, according to recent Lightstone research
Looking at the house price inflation growth in the four major provinces, it’s evident the market has been slowing down over the most recent months. This is more pronounced in the Cape provinces with Gauteng joining the trend.
Despite the acute slowdown in the Western Cape it still comes out on top with a rate of 7.1%. However, the South African metro that bucks the trend and comes out tops by far is the City of Cape Town. House price inflation here has continued to rise and is currently sitting at 12%.
While house price inflation across the various metros is not expected to be exactly the same, the difference between the City of Cape Town and the other metros is significant. Property inflation in Nelson Mandela Metro and Ethekwini continues to grow at roughly 4%.