South African house prices 'fall in real terms'
By Danny Bance

South African house prices 'fall in real terms'

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The value of residential property in South Africa declined in real terms over the course of 2011.

Global Property Guide explained that, despite the nation's house prices climbing by 2.3 per cent in nominal terms last year, they actually slid by 2.6 per cent in real terms.

According to the publication, this is largely down to rising inflation, which stood at 6.3 per cent for consumer prices in January 2012.

It added that, given the increase in inflation, predictions of house price rises in 2012 of between two and three per cent by the country's Absa bank may be optimistic.

Among the issues affecting South Africa's housing market are the nation's economic recovery, rising supply of properties with lower demand and a reduction in the level of investment in infrastructure projects.

Samuel Seeff, of Seeff Property Services, told the news provider the real estate sector has not ground to a halt.

"The [property] market is moving slowly and prices are under pressure, but there is still activity," he stated.

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