However, the national slowdown disguises diverse trends in regional and metro housing markets across South Africa.

The Study provides in-depth and unbiased analysis of real estate market trends, highlighting market movements and property value trends. Each report utilises insights and data gleaned from Savills, the Pam Golding Property (PGP) Index and expert market analysts, Lightstone.

Highlights in this month’s issue of The Study are:

  • Gauteng’s housing market has underperformed the national market since mid-2013. In part this reflects subdued house price inflation in the region’s mining and manufacturing town housing markets. In contrast, housing markets in Gauteng’s major metro areas remain vibrant.
  • As the major metro areas become more expensive, buyers are looking further afield. With greater affordability and an easy commute via the Gautrain to both Sandton and Pretoria, the Midrand is increasingly attracting the attention of many potential residential property buyers.
  • While the northern areas of Gauteng have performed well and are home to some of the highest average house prices, the strongest growth in house prices is being recorded in the more affordable sectors of the market.
  • With the bulk of South Africa’s future population growth forecast to be concentrated within the Gauteng region, this will provide a solid underpinning for housing demand in the province for the foreseeable future.
  • The net in-migration of residents and an ongoing shortage of stock has ensured that the Western Cape remains the top-performing regional housing market. The total number of housing units sold in the Cape is increasing gradually, even as the average number of units sold nationally declines.
  • The Eastern Cape’s growing middle class population, coupled with improved housing affordability, has make the region’s property market more accessible to a larger portion of the regional population – resulting in a strong surge in first-time buyers in both Port Elizabeth and, particularly, East London.
  • While KwaZulu-Natal’s house price inflation is losing momentum, it is slowing from a relatively high base and continues to outperform the national average. Unlike other regions, the key driver of the KZN housing market is not the major metro but rather growth nodes along the North Coast.

View The Study Summer 2015/16