|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.