Absa - Land prices

In the first quarter of 2007, nominal land prices, according to Absa, increased by 22,7% y/y to about R328 300 on average, compared with growth of 22,1% y/y in the fourth quarter of last year. Real growth of 16,1% y/y was recorded in the first quarter, compared with growth of 15,7% y/y in the preceding quarter.

The scarcity of suitable and properly serviced land for residential development has assumed importance, especially in the rapidly growing metropolitan areas of the country. Absa does not expect this situation to improve materially and will increasingly be reflected in vacant land prices in years to come. Along the coast, the value of residential land with good views has also increased significantly over the past few years.

As the supply of and demand for vacant land are, to a large extent, moving in opposite directions in the coastal and major metropolitan regions, residential land prices are expected to escalate further in future.
Loading comments
More news articles
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
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