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Property prices soar in major South African cities, is it time to buy or rent?
StatsSA’s new data about property prices in South Africa reveals that the annual residential property price inflation in South Africa in 2022 was 5.3% in December, down from 5.4% in November. According to BusinessTech, StatsSA’s Residential Property Price Index (RPPI) for December 2022 highlights that the RPPI rose by 0.4% month-on-month in December.
The RPPI records property transactions registered with the national deeds office and measures how the prices of residential properties bought by households change. It measures this rate at national, provincial, and metropolitan municipality levels.
According to StatsSA, the Western Cape and Gauteng were the main contributors to the annual national property inflation rate of 5.3%. The RPPI for all metropolitan areas rose by 3.8% between December 2021 and December 2022. The City of Cape Town and Ekurhuleni were the biggest contributors to the annual inflation rate for metropolitan areas, with the City of Cape Town rising by 5.6% year-on-year and contributing 1.6 percentage points. Ekurhuleni rose by 4.8% year-on-year and contributed 0.6 percentage points.
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On the other hand, Buffalo City saw the greatest increase at 8.3% year-on-year. Increases for the metros are as follows:
- Buffalo City: +8.3%,
- City of Cape Town: +5.6%,
- Ekurhuleni: +4.8%,
- All metros: +3.8%,
- eThekwini: +3.5%,
- Nelson Mandela Bay: +3.4%,
- City of Johannesburg: +2.1%,
- City of Tshwane: +1.7%, and
- Manguang: +0.8%.
A more recent report from StatsSA revealed that since 2010, residential property prices and inflation in the country have risen by 98%, with Cape Town experiencing the most significant surge at 141%. Furthermore, since August 2014, property prices in Cape Town have consistently increased more than in other metros, with another wave occurring in 2018 and 2019.
Rising property prices are challenging for everyday consumers and first-time home buyers in South Africa, especially with increased monthly bond payments due to a surprising 50 basis point interest rate hike. They also have to contend with constant load shedding ramping up the price of everyday goods. StatsSA’s residential property price index provides valuable insights into the country’s property market and helps consumers make informed decisions.
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