Survey shows increased affordability in South Africa

House prices are becoming more affordable in South Africa, according to a new survey carried out by the Absa Group.

The research revealed that house prices fell by 2.7 per cent last month in comparison to the same time the previous year, dropping the average house price to USD111,195 (GBP73,900).

Commenting on the research, Jacques du Toit, senior property analyst with Absa Home Loans, said: "This is regarded as an indication of the strain experienced in the market for larger and more expensive properties, with buyers focusing on smaller and more affordable homes."

However, despite the global recession, South Africa may receive a boost next year when it hosts the FIFA World Cup.

Tourists will flock to cities like Cape Town, Johannesburg, Durban and Pretoria and it will be hoped the World Cup can leave a positive legacy even after the final games are played.

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