Standard Bank's median house price growth hobbled to 1.6% in January 2011, according to the bank's monthly data. This is from the revised growth rate of 0.2% in December year on year (y/y).
Growth in real terms, utilising the bank's forecast for CPI in January of 6.2%, remained in negative territory.
Standard Bank research analyst Sibusiso Gumbi said on Tuesday that consumer demand, while resilient, faced daunting headwinds.
"Consumer demand, albeit waning somewhat, continues to show resilience, with real retail sales having grown to 6.8% y/y in November, from a revised 7.5% y/y in October.
“However, these recent gains are unsustainable in our view, given the weak macroeconomic fundamentals pertinent to the retail sector such as downwardly revised economic growth prospects and feeble consumer confidence," Gumbi said.
He said these challenges would impede a return to boom-time double-digit house price growth in the near term. - I-Net Bridge
