Statistics SA's latest Residential Property Price Index shows that over the past five years, residential property prices in Cape Town have surged by 30%, while Johannesburg experienced a modest growth of just 8.6% - the weakest among all metropolitan areas.
The Residential Property Price Index (RPPI) tracks changes in prices for various types of dwellings, including houses, townhouses, and flats purchased by private individuals.
Nationally, the RPPI rose by 3.5% in the 12 months leading to March 2024, up from a revised 3.1% in February 2024.
Residential property inflation has been on an upward trend since hitting a low of 1.6% in May 2023.
Johannesburg property prices have declined, driven by the city's ongoing struggles with severe water and electricity issues, a significant hike in municipal rates, and unstable local governance.
Additionally, the semigration of wealthy South Africans has further impacted the market, benefiting regions like the Western Cape, which are experiencing growth as a result.
In March 2024, the Western Cape recorded the largest price increases compared to March 2023, with an average rise of 7.7%.
North West followed with a 5.0% increase, and Mpumalanga saw a 2.3% rise. Conversely, properties in the Northern Cape and Limpopo became more affordable, with prices declining by 4.8% and 2.3%, respectively. Gauteng registered a marginal increase of 0.7%.
The RPPI statistical release includes data from South Africa’s largest cities. The RPPI for metropolitan areas rose at an annual rate of 2.6% in March, up from 2.1% in February.
Buffalo City Metropolitan Municipality posted the largest increase at 7.0%.
Residential properties in Cape Town were 5.7% more expensive, while in Gauteng, both Ekurhuleni and the City of Tshwane saw price increases.
However, the City of Johannesburg saw a decline of 1.3%. Nelson Mandela Bay Municipality in the Eastern Cape and eThekwini Municipality in KwaZulu-Natal also reported price drops.
Data are also provided for new and existing properties. In metropolitan areas, the price index for new properties saw an annual increase of 3.1% in March, higher than the 2.4% increase for resold properties.
Five-Year Growth Lacks Momentum in Johannesburg
The RPPI time series illustrates price changes over a five-year period. Nationally, property prices have risen by 23.8% since March 2019, translating to an average annual increase of 4.8%.
The Western Cape once again leads the pack.
Property prices in the Western Cape have increased by 35.5% over the same period, while the Northern Cape recorded the slowest growth at just 0.9%. Gauteng's property prices rose by 16.4%, below the national average.
Notable five-year growth was observed in freehold properties in Nelson Mandela Bay Municipality, which increased by 31.1%, and in the City of Tshwane, which saw a 30.3% rise.
Sectional title properties in Buffalo City Metropolitan Municipality also performed well, with a 30.0% increase. In contrast, Johannesburg's market remained sluggish, with overall growth of just 8.6%.
The RPPI data are sourced from property transaction records maintained by the Office of the Chief Registrar of Deeds (Deeds Office).
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