16 Jan 2013
Prices of middle segment homes increased by a nominal 0.6 percent in 2012 after increasing by 1.7 percent in 2011, according to the Absa House Price Index.
In real terms prices dropped by 5.4 percent in the first 11 months of 2012 with real price deflation of 2.9 percent evident in the corresponding period in 2011.
Writing in the report, Jacques du Toit, property analyst at Absa Home Loans, says nominal year-on-year (y/y) price growth of 7.1 percent was recorded in December 2012 from a revised 5.3 percent in November.
Real annual house price deflation still occurred in the large home segment up to November, with prices of small and medium-sized homes showing some real growth in the past two months, he explains.
The average nominal value of small homes as of December 2012 was R791 100 (homes measuring 80 to 140 square metres), medium-sized homes (homes measuring 141 to 220 square metres) R1 076 700 and large homes (221 to 400 square metres) R1 559 000.
Du Toit points out that the South African economy is set to grow by a real 2.8 percent in 2013 after expanding by an estimated 2.5 percent in 2012.
The forecast is for inflation to remain below 6 percent in 2013, with the result that interest rates are expected to stay at current levels in the next twelve months.
In view of current conditions and prospects for the economy, the household sector and the residential property market, house price growth is forecast to remain relatively low in 2013 compared with growth of a few years ago, he says.
Against this background, estate agents report that coastal and holiday home prices are currently below average, with price tags of between 30 and 50 percent below average, a trend likely to continue for a few months.
According to the Rawson Property Group, Langebaan in particular is offering bargains with some vacant stands carrying asking prices of as low as R100 000, the majority of sales taking place priced below R250 000 and the average price of R180 000.
Home sales increased by 43 percent with average sales prices obtained remaining fairly stable since 2010 – increasing from R1 029 million to R1 106 million, according to Cape Coastal Homes.
The agency reports that in the last four months, a house sold for R11.25 million making it the top sale price achieved up to now in the estate.
Benhard Wiese, principal agent at Cape Coastal Homes, says according to Lightstone, the present average valuation for Val de Vie properties is R3.79 million – ranking it as the 373rd most expensive estate in South Africa, which is “on par” pricewise with Oubaai Golf Estate (George) and Sandhurst Ext 4 (Johannesburg).
“The average value of Val de Vie property is set to dramatically increase during the next few years – as more luxury homes are being developed on the vacant erfs.”
Steven Delit of RE/MAX Living Atlantic reports that house sales in 2012 increased both in the number of sales and prices paid.
The average price in 2012 was R8 million compared to R7.3 million in 2011.
November’s average price was R11.1 million compared to R5.7 million in November 2010, he says.
Fresnaye had the greatest increase in the number of house sales and Bantry Bay had the largest decrease in the number of properties sold, he says.
Meanwhile, mortgage originator ooba says house price growth is expected to show moderate growth during 2013 with significant activity in the first-time buyer market.
Read the article here.
According to the oobarometer, in the 12 months to December 2012, the average nominal house price grew 3.9 percent y/y to R862 940 from R830 641 in 2011. – Denise Mhlanga
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