House prices around the Cape Peninsula grew “relatively strongly” the past year, according to Absa’s latest quarterly housing review.
“House prices along the coast improved further in the second quarter of 2013, growing by a nominal 15.6% year-on-year, after being in a state of deflation from late 2011 up to mid-2012.”
The bank’s Third Quarter 2013 Housing Review — released on Friday –finds the relatively strong performance of the coastal housing market was driven largely by two regions.
“The Cape Peninsula and False Bay area in the Western Cape also recorded relatively strong nominal growth in the second quarter of the year, coming in at 16% year-on-year.”
“The average nominal price of a new house was up by 9.8% year-on-year to about R1.7m in the second quarter of the year, which translated into real price growth of 3.8% year-on-year.
“The average price of an existing house increased by a nominal 11.9% year-on-year to R1.3m in the second quarter, which came to a real increase of 5.8% year-on-year in the quarter.”
As a result, it was nearly 34% cheaper to have bought an existing house than to have a new one built in the second quarter of this year.
“The price difference between new and existing housing has remained relatively stable at just below 34% since the second quarter of last year.”
Jane Jones, Atlantic Seaboard Sectional Title Specialist (NQF Level 4)
Mobile (+27) 72 467 2611 | Office (+27) 21 434 1223; [email protected]