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SA's house-price growth

6 May 2004

We had the highest nominal growth rate over the past 12 months with a nominal year-on-year increase of 22,7%, according to real estate portal ResearchWorldwide.com. This excludes inflation.

The ranking of the top five is as follows:
South Africa........... 22,7%
Australia................ 18,9%
UK........................ 16,7%
Spain.................... 15,6%
New Zealand......... 15,5%

Of interest is that Absa senior economist Jacques du Toit said that house prices in other countries had come off a higher base than South Africa's and that although our rate was expected to slow, it did not imply a drop in house prices.

Article on Rode

Reader Comments: 1
Hlatigan@mweb.co.za 07/05/2004:

Two things are pushing up property prices :
1. Exorbitant estate agents' commissions - nobody sells without wanting to get back the huge commission they are having to pay.
2. The transfer duty. Another item which sellers want to get back when they sell.
Add on the 5%+ transfer duty, and the 7.98% agents commission, and you have substantial price increases with every sale of a property, before the owner actually makes any profit at all.

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