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• Create Date February 17, 2025
• Last Updated February 17, 2025

Residential Property Price Index September 2024 - House prices show gradual improvement

Average house prices in South Africa reached 3.3 percent y-y in September 2024 (latest available data from Stats SA), showing the strongest annual increase since December 2022 (3.5 percent). September 2024 also saw the first cut in the prime lending rate to 11.5 percent, with twomore 25 basis point cuts announced since then, that has lowered the prime rate to 11 percent by January 2025. This should bode well for house price growth going forward. However local government services, provincial investor sentiment and housing supply will continue to impact overall house prices in specific provinces. Recent escelation in house prices in in Limpopo resulted in the provinces showing an above average increase of 8.1 percent (down from 8.4 percent in the previous month), but is still on average only 2.8 percent higehr for the first nine months of 2024. Prices in Western Cape moderated slightly to 5.7 percent (from 6.1 percent), but is still well above the national average of 2.7 percent, at 6.3 percent, for the first nine months of 2024. House prices in the Western Cape is not solely driven by the City of Cape Town where house prices averaged below 5 percent, but more than likely by areas that has shown a significant increase over the last 12 to 18 months in terms of private sector investment such as Knysna and George. House prices in the Northern Cape has fallen by an average of 5.9 percent (the only provinces where house prices are falling in nominal terms), while Gauteng showed a moderate 1.3 percent increase. Kwazulu Natal recorded the 2nd worst performance, with nominal price growth at a mere 0.9 percent in September 2024. Consumer inflation averaged 3.8 percent y-y in September 2024, (and 5 percent on average for the over the nine-month period) suggesting average national house prices continued to decline in real terms.

Full details, including charts and trends, are included in the attachment.

 

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