Graphs

Property Values Across South Africa

Are property prices keeping up with inflation? Below, I share my analysis of residential property prices, deflating the nominal values by the headline consumer price index (CPI). Cape Town property prices have grown at an annualized rate of 1.4% between January 2010 and November 2024, after discounting headline inflation (6.52% before discounting inflation).

I find that the Western Cape and Cape Town has achieved successful growth in property values between 2014 and 2017, although little to no real growth since then, on aggregate. Other cities and provinces have seen declining real property values since 2010, except for the Northern Cape, which saw an initial rise up until 2017, followed by a decline almost back to the starting level. Differing trends within the country have been driven by intra-country migration, caused by differences in government service delivery.

https://codera.co.za/city-property-prices-in-south-africa/