select
|

FNB Property Barometer – March 2015

According to the latest statistics from First National Bank (FNB), the housing market is seemingly continuing to reflect recent economic weakness, with house price inflation slowing yet again

The weakness in the housing market coupled with the SARB (Reserve Bank) announcements at the Monetary Policy Meeting has led FNB to revise their own expectations for 2015. FNB had started the year expecting 8-9% average house price increase for this year, but now expect an average nearer to 5%.

According to the FNB House Price Index, the average house price for March 2015 rose 5.3% year-on-year. This is slightly slower than the previous month’s revised 5.6%, and continues a slowing year-on-year price inflation trend of recent months.

Moving on to the seasonally adjusted month-on-month house price inflation rate, a better indicator of recent growth momentum than the year-on-year rate, the early-2015 “soft patch” in the rate of strengthening in the housing market is strongly reflected. 

The average price of homes transacted in March was R994,718.

Examining the longer term real house price trend (house prices adjusted for CPI inflation), we see that despite some rise in recent years, the average real house price level remains -17.2% below the high reached in December 2007 at the back end of the residential boom period. Looking back longer though, the average real price remains 66.2% above the January 2001 level, a time back just before boom-time price inflation started to accelerate rapidly.

It is still possible that some positive impact from the low inflation environment may yet feed through into the economy, and into real household disposable income growth in the near term. However, at this stage it does appear that a host of negative factors have at least in part worked against the “economic positives”, and early-2015 economic data releases were disappointing. Apart from the electricity issues and weak export commodity prices, significant effective personal tax rate and fuel levy hikes now have to impact the Household Sector too.

It would seem that economic weakness is reflected in certain of the FNB residential property data, notably house price inflation, suggesting limited further strengthening potential for the residential market in the near term.

Read the full report


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK