At a provincial level, nominal year-on-year growth in South African house prices in the middle segment of the housing market varied between 13,5% and 25,6% in 2006, according to Absa’s Residential Property Perspective First Quarter 2007, recently released in Johannesburg. Real prices, according to the Perspective, increased by between 8,4% and 20% last year compared with 2005.
The following price rises occurred in the various provinces in 2006:
Mpumalanga: a nominal 25,6% and a real 20%.
Limpopo: a nominal 24,8% and a real 19,2%.
Northern Cape: a nominal 24,8% and a real 19,2%.
KwaZulu-Natal: a nominal 19,8% and a real 14,4%.
North West: a nominal 17,7% and a real 12,5%.
Eastern Cape: a nominal 17,5% and a real 12,4%.
Free State: a nominal 16,5% and a real 11,3%.
Gauteng: a nominal 15,2% and a real 10%.
Western Cape: a nominal 13,5% and a real 8,4%.
In the country’s major metropolitan areas, nominal house price growth of between 13,6% and 19,5% was recorded in 2006. Real price growth in these areas varied between 8,5% and 14,1% last year compared with the previous year.
Price growth in the metropolitan areas was as follows in 2006:
Bloemfontein: a nominal 19,5% and a real 14,1%.
Greater Johannesburg: a nominal 17,9% and a real 12,7%.
Durban/Pinetown: a nominal 17,8% and a real 12,5%.
Port Elizabeth/Uitenhage: a nominal 16,4% and a real 11,2%.
Cape Town: a nominal 14,2% and a real 9,1%.
Pretoria: a nominal 13,6% and a real 8,5%.