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.”