Growth in building activity slows down in the first quarter of 2013

February 2013 saw year-on-year growth in the average value of homes in the middle segment of the South African housing rising further.

Building activity in the South African market for new housing remained subdued in 2012 compared with the period of 2005 to 2008.

December 2012 saw year-on-year growth in the average value of homes in the middle segment of the South African housing market rising further.

The continuing low interest rate environment and slight increases in disposable income have sustained nominal property value growth

As the global economic outlook remains uncertain, property investors should brace themselves for a slowdown in the capital appreciation of their existing assets.

The residential property market in South Africa is still coming to terms with the fallout from the economic crisis, said Auction Alliance CEO Rael Levitt on Monday.

House prices are expected to decline by 10% this year, but the luxury end of the market is showing strong signs that the residential market is at a turning point.

House price growth is expected to continue the downward trend this year to 9% before improving again next year

Nominal house price growth more than halved last year as buyers shied away from an already expensive housing market. According to the latest Absa house price index, nominal price growth declined from 30,8% year on year in January last year to 14,7% in December.