Property prices are influenced by various factors including economic conditions, interest rates, credit availability, inflation, supply and demand, government policies, location, and market sentiment. In South Africa, COVID-19 caused significant semigration, particularly from poorly governed provinces like Gauteng to better-managed ones like the Western Cape, driving up demand amid low interest rates.
Residential property prices saw minimal growth, averaging a 1.9 percent increase in 2023. The Western Cape outperformed Gauteng in property price recovery, with Ekurhuleni showing the best performance among Gauteng metros. In contrast, house prices in KwaZulu-Natal, Mpumalanga, and the Northern Cape declined.
The North West Province led in property price growth, with a 9.5 percent year-on-year increase as of January 2024. Governance improvements are critical for infrastructure development, as highlighted by promises from the then-acting North West Premier and ongoing plans under the new Premier, Lazarus Mokgosi. Residential Property Price indices are released by Stats SA, or subscribers can download the provincial summary including charts from here
