Property price inflation slows to 5. 2% in February amid demand for affordable sectional title units
Annual residential property price inflation came in at 5.2% in February 2025, slightly down from a revised 5.3% in January, according to the latest Residential Property Price Index (RPPI) from Statistics South Africa.
The index rose 0.4% month-on-month in February. Overall inflation is currently 2.8%.
The Western Cape was the largest contributor to the annual national inflation rate, recording growth of 8.5%, with Gauteng following with house price increases of 2.5% inflation.
In metropolitan areas, prices increased by 4.9% year-on-year. The City of Cape Town saw the largest metro-level rise at 7.6%, while the City of Johannesburg recorded gains of 2.9%.
The RPPI for first-time sales rose by 5.5% compared to February 2024, and by 0.3% month-on-month.
Resales increased by 5.6% year-on-year and by 0.4% for the month.
By property type:
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
3 days ago
- IOL News
Retail sales growth slows in June amid mixed consumer sentiment
On a quarterly basis, seasonally adjusted retail sales rose by 0.9% in the second quarter, suggesting a positive contribution to the country's Gross Domestic Product (GDP) for the period. South Africa's retail sector has experienced a modest uptick in sales, reporting a year-on-year increase of 1.6% in June 2025. This figure marks a notable moderation from the robust 4.3% surge witnessed in May, according to Statistics South Africa. The latest data highlight a mixed performance across various retail categories. Sales for textiles, clothing, footwear, and leather goods saw a decrease, alongside a decline in food, beverages, tobacco, and general dealers. Conversely, other sectors showed promising gains. Retailers of household furniture, appliances, and equipment; pharmaceuticals and medical goods; as well as cosmetics and toiletries, reported a remarkable increase of 4.2% compared to previous figures, signalling consumer preference shifts. Moreover, hardware, paint, and glass products also experienced growth, indicating that while some segments of the retail market faced challenges, others thrived amidst an evolving economic landscape. On a quarterly basis, seasonally adjusted retail sales rose by 0.9% in the second quarter, suggesting a positive contribution to the country's Gross Domestic Product (GDP) for the period. While retail sales remained flat monthly, the overall trade advanced by 3.7% compared to the second quarter of the previous year, reflecting resilience in certain retail segments. Investec economist Lara Hodes attributed part of this growth to a favourable economic backdrop for consumers, characterised by low inflation and recent monetary easing. A further interest rate cut announced in July has seen a cumulative decrease of 125 basis points since the easing cycle commenced, which has placed more disposable income in consumers' hands. 'Real take-home pay, adjusted for inflation, is still notably up on year-ago levels,' Hodes noted, referencing data from BankservAfrica. However, she cautioned that domestic challenges and global uncertainties have taken a toll on consumer confidence, which remains subdued. Hodes highlighted that unemployment has picked up slightly in the second quarter, with the rate increasing by 0.3% quarter-on-quarter to reach an elevated 33.2%. The combination of these factors illustrates a nuanced picture for South African consumers; while some are reaping the benefits of economic conditions, others are still grappling with job insecurity. The latest retail data thus serves as a reminder of the mixed realities facing South Africans. As the economy navigates through both local and global challenges, consumers remain cautiously optimistic yet uncertain about the future of their financial wellbeing. BUSINESS REPORT
IOL News
4 days ago
- IOL News
Demand for a Basic Income Grant grows as unemployment soars
Advocacy group Black Sash has called for the urgent introduction of a permanent Basic Income Support (BIS) grant for unemployed South Africans Image: File Advocacy group Black Sash has called for the urgent introduction of a permanent Basic Income Support (BIS) grant for unemployed South Africans, warning that millions are being pushed deeper into poverty as the country's jobs crisis worsens. The call follows the release of Statistics South Africa's latest Quarterly Labour Force Survey on Tuesday, which showed that the unemployment rate has risen to 33.2%, with 8.4 million people jobless and nearly one in two young people unable to find work. "Behind these figures are millions of households facing hunger, deepening poverty and the daily struggle to survive," Black Sash said. "Black Sash reiterates its call for the urgent introduction of permanent Basic Income Support (BIS) for all those aged 18 to 59 with little or no income, set at a level that at least meets the food poverty line and adjusted annually to inflation". However, while Black Sash and civil society continue to push for the urgent BIS grant, government progress remains slow amid growing concerns over affordability. Cabinet has also yet to approve the draft BIS policy, citing the need to ensure the grant is financially sustainable and linked to economic opportunities for recipients. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The group added that without BIS, "social grants remain grossly inadequate to protect the most vulnerable from the spiralling cost of living". "High food inflation, particularly in essentials like meat, vegetables and cooking oil, is eroding the limited social support available, leaving millions unable to afford basic nutrition". The organisation further called on the government to also implement a permanent BIS without delay; increase the value of social grants in line with the food poverty line, and invest in sustainable job creation programmes alongside social protection measures. "Our Constitution promises every South African the right to social security. It is time for the government to honour this commitment, not with rhetoric but with decisive action". IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
4 days ago
- IOL News
South Africa's unemployment rate hits highest level in a year as jobless numbers soar
The increase in unemployment has raised concerns, with the official unemployment rate jumping by 0.3 percentage points from 32.9% in the first quarter to 33.2% in the second quarter. Image: Henk Kruger/Independent Newspapers The official unemployment rate in South Africa rose to its highest in one year as the jobless population surged by 140 000 in the three months to June, resulting in a total of 8.4 million individuals seeking work. The increase in unemployment has raised concerns, with the official unemployment rate jumping by 0.3 percentage points from 32.9% in the first quarter to 33.2% in the second quarter. This is the highest jobless rate since the second quarter of 2024. According to the Quarterly Labour Force Survey (QLFS) results for the second quarter of 2025, the labour market showed a modest increase in employment numbers but this was coupled with a worrying rise in the unemployment rate. Statistics South Africa said there was an increase of 19 000 employed persons, bringing the total to 16.8 million. However, a glimmer of hope emerged as the expanded unemployment rate saw a minor decrease of 0.2 percentage points, dropping to 42.9% from the previous 43.1%. This shift in employment dynamics contributed to an overall increment of 159 000 individuals (up 0.6%) in the labour force. Notably, the number of discouraged job-seekers fell by 28 000 to 3.4 million, marking a 0.8% decline, while the non-economically active population—which includes those not participating in the labour market for other reasons—remained static. Consequently, the total number of economically inactive individuals fell to 16.6 million. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ FNB senior economist Thanda Sithole said the improvement in employment of 19 000 jobs aligned with expectations of further gross domestic product (GDP) growth. However, Sithole said the persistently high unemployment rate highlighted the continued vulnerability and weakness of the labour market. 'This is further compounded by heightened uncertainty over the potential employment impact of US tariffs on sectors such as agriculture, automotive, machinery and equipment manufacturing, and mining (excluding critical minerals producers),' Sithole said. 'Over the medium term, sustained structural reforms and accelerated efforts to diversify export markets should help support job creation.' Youth unemployment still remains critically high. The jobless rate for the 15–24 age group stood at 62.2% the second quarter, compared with 62.4% in the first quarter. For the 25–34 age group, it was 40.5%, compared with 40.4% in the previous period. Sithole said this underscored the urgent need to accelerate pro-growth structural reforms that can drive sustainable and inclusive economic expansion. There are also fears that the harsh tariffs imposed by the US could see a marked increase in agricultural jobs lost going forward, especially in certain sub-sectors. Meanwhile, Stats SA said that sector-wise, formal sector employment experienced a slight gain, with an increase of 34 000 jobs, while the informal sector reported a decline of 19 000 positions in the same period. The sectors that thrived included Trade, which alone added 88 000 jobs, followed by Private households and Construction, which each saw increases of 28 000 and 20 000, respectively. Conversely, sectors like Community and social services, Agriculture, Finance, Transport, Utilities, and Manufacturing faced significant job losses, with the Community and social services sector alone losing 42 000 positions. Investec economist Lara Hodes said the government needed to fix the education of the young population in a bid to address the unemployment crisis. 'Addressing the unemployment crisis remains a key imperative of government. A focus on education is critical. Indeed, those 'individuals without matric recorded an unemployment rate of 39.4%' in Q2.25, according to Stats SA, 'while graduates had a rate of 12.2%,' Hodes said. 'The expanded unemployment rate eased marginally to 42.9% in the second quarter, from 43.1% previously, but is a notable 13.4% points higher than the rate logged during the same period in 2008, demonstrating the extent of SA's unemployment situation.' BUSINESS REPORT
