South Africa property prices increasing, study shows

Year-on-year prices in South Africa have shown a nominal increase of 1.2 per cent, according to research.

Ooba, a mortgage information provider, found that the average price of a property in the country rose from ZAR774,449 (£58,228) to ZAR784,427 between June 2008 and June 2009.

A hike in the month-on-month purchase prices was also evident, with a nominal increase of 1.4 per cent from R773,440 in May.

Chief executive of the company Saul Geffen said the change in cost does not necessarily mean the downturn is over as other factors have to be considered.

He remarked: "This may be attributed to a shift to higher priced properties in June, given affluent homebuyers' ability to better adapt to strict bank lending practices."

Earlier this week, Johannesburg was revealed as the most cost-effective place to live for expatriates when it replaced Asuncion in Paraguay at the bottom of the Mercer 2009 Cost of Living list.

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