South African prices back to 2006 levels
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South Africa property prices have fallen back to levels last recorded in December 2006, according to First National Bank’s (FNB’s) house price index.
The bank’s data shows that average values fell 10.2% year-on-year taking prices to levels recorded two-and-a-half years ago.
Despite a series of interest-rate cuts, prices continued to fall, largely due to the ongoing economic slowdown.
Prices are expected to continue falling due to a “significant oversupply” of property on the market, said FNB.
FNB announced that the average price of a South African home in April stood at £53,628, just £5 more than the median price recorded in December 2006.
Property strategist John Loos for FNB said: “The steady deterioration was the result of a sizable oversupply that has built up in the residential market, with selling due to financial pressure being a key driver of supply.”
