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Residential Property Indices: September 2014

The recently published Residential Property Indices from Lightstone reveals that residential house prices in South Africa grew by 7.58% over last 12 months.

Apart from the house price growth, the low value end of the market -  a market of increasing interest to mortgage lenders - is also continuing to perform well and is currently growing at 14.9% year on year. 

The growth in this segment of the market might suggest that the mid-value market could also experience a more aggressive growth trend as this market is fed by buyers upgrading out of the lowest tier.

The full effect of the unchanged repo rate on the property market still needs to be assessed, however bond term at cancellation has steadily moved up over the last couple of years with consumers holding onto property and needing access to credit for a longer period. With more than half of residential property value being bonded, the lending costs of mortgage lenders play a huge role in driving activity and prices in this market.

View the full Lightstone Residential Property Indices


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