RESIDENTIAL SECTOR
Growth in property prices slows
Property price growth in the Western Cape has fallen below 10% for the first time in at least three years
There has been a gradual slowdown in growth in property prices across SA including in the Western Cape, where property price growth has fallen below 10% for the first time in at least three years. Herschel Jawitz, the head of Jawitz Properties, said that in most regions in SA, residential supply exceeded demand. This meant cautious buyers who were seeking value were spoilt for choice. Meanwhile, uncertainties in SA had made people hesitant to sell their properties. "In Johannesburg, we are seeing zero nominal price growth in certain circumstances — not area-specific — where sellers are not getting their purchase price in nominal terms, when they have bought one to two years ago," Jawitz said. He said value, as a combination of position, price and size, was the key driver in the market at all price levels. Jawitz said that because buyers were spoilt for choice, they were reluctant to get involved in significant improvements to a property, believing they could pay the same value-drive...
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