South African property prices 'stabilising'

House prices in South Africa are starting to stabilise, it has been suggested.

Banking group Absa has recorded a 3.4 per cent fall in prices in the year to August, down from 3.7 per cent in July and 3.8 per cent in May, suggesting the downturn in the sector is losing momentum.

Senior property analyst for the company Jacques du Toit said that this is clear evidence that house price deflation in the country is "slowing down".

By the end of 2009 the year-on-year drop will be down to three per cent, he predicted, adding that next year will see prices rising again.

Mr du Toit also forecast that the South African economy as a whole will begin to grow again by the end of 2009.

Such figures may encourage those keen to buy property in the country.

Last week South African property investors were told that 2010 could be a very good year due to the focus the country will receive from hosting the football World Cup.

Former Manchester United goalkeeper and ambassador for the tournament Gary Bailey said the event will create "immense tourism opportunities". Something that may interest those considering investing in the holiday home rental sector.

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