- The latest Residential Property Index by Lightstone shows that national year-on-year house price inflation was 4.7% at the end of October.
- Annual house price inflation in the low-value segment of the market continues to outgrow that of higher value segments.
- Annual freehold house price inflation is about 5.5%, compared to 2.5% in the case of sectional title properties.
National year-on-year house price inflation was 4.7% at the end of October - the third consecutive month of growth of 5% or less.
On monthly basis, there has been just 0.29% growth in house prices between September and October.
This is according to Lightstone latest Residential Property Index House released on Tuesday.
Annual house price inflation in the low-value segment of the market (residential property of less than R250 000) continues to outgrow that of higher value segments. House prices in the low value band are currently growing at 10.4% - almost double that of price growth in the mid-value segment (properties of between R250 000 and R700 000).
The latest oobarometer statistics released by ooba show that homes in the R1.3 million price bracket are currently the most sought after.
In the high value band (R700 000 to R1.5 million) annual house price inflation is about 5.5% and in the luxury band (properties of more than R1.5 million) it is 4.5%, according to Lightstone.
Annual freehold house price inflation is about 5.5% compared to 2.5% in the case of sectional title properties. According to the Pam Golding Residential Property Index, the surge in freehold price inflation was due to the demand for more space due to the lockdown and remote working trend.
Grant Smee, managing director of Only Realty, says demand for residential property is particularly high among first-time homebuyers. In his view, the "buyers' market" conditions will continue in the R2 million-plus price band well into 2022.
"On the other hand, sellers in sought-after areas now have the upper hand. The sellers' market seeing the most activity is most prominent among properties ranging from R700 000 to R2 million in areas with convenient access to schools, public transport, fibre [internet] and retail centres," says Smee.
The latest Lightstone data shows that annual property inflation along coastal regions are currently about 7.5% compared to 6% inland.
The report found that house price inflation in the Eastern Cape (7.7% at the end of October), Free State (7.5%), Gauteng (4.8%) and Limpopo (5.7%) are trending down, while in KwaZulu-Natal (5.9%), the North West (5.3%) and Western Cape (6.9%), it is going up. Mpumalanga (5.5%) and the Northern Cape (6.1%) remained unchanged from the previous month (September).