Absa - Land prices

In 2006, nominal residential land prices increased by 19,8% to about R288 500 on average, compared with growth of 34,3% in 2005 according to Absa’s Residential Property Perspective First Quarter 2007, recently released in Johannesburg.

This, the bank notes, represents real growth of 14,4% last year (29,9% in 2005).

In the fourth quarter of 2006, nominal land prices increased by 21,6% year-on-year to about R312 200 on average (17,1% year-on-year in the third quarter). Real growth of 15,3% was recorded on a year-on-year basis in the final quarter of last year (11,3% year-on-year in the third quarter).

The increasing scarcity of suitable and properly serviced land for residential development the bank says “probably played an important role in price growth picking up towards the end of last year.”

Loading comments
More news articles
news
Guidelines to securing a home loan
29 May 2018
Many young South Africans are working hard to achieve their dream of purchasing their first home. However, the process can be challenging due to the daunting application process, which can take up to 2 years and is often enough to discourage prospective buyers.
read more
news
Things you should consider before upgrading to a new home
23 Apr 2018
The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
read more