Latest news with #PamGoldingResidentialPropertyIndex
The Citizen
04-08-2025
- Business
- The Citizen
Recovery in national house price inflation continues apace
Encouragingly for homeowners and investors, the recovery in national house price inflation (HPI) continues to gather momentum, with the Pam Golding Residential Property Index rising to +7.3% in June 2025, up from a revised +6.9% in May 2025. This is significantly above the two previous cyclical peaks and the strongest growth rate in national house prices since late-2007. Since late-2024, consumer inflation has remained well anchored at or below the lower limit of the Reserve Bank's 3%-6% inflation target. As a result, the recovery in national house prices has seen real (inflation-adjusted) growth in house prices increase, rising to +4.3% in June 2025, the ninth consecutive month in positive territory. Says Dr Andrew Golding, chief executive of the Pam Golding Property group: 'While the Western Cape continues to lead the way, the recovery is broad-based, with growth in house prices accelerating across all three major regional markets.' According to the Pam Golding Residential Property Index the recovery in HPI in the Western Cape continued to accelerate in June, rising to +8.3%, while both Gauteng and KwaZulu-Natal continued to rebound strongly, rising to +5.4% and +5.1% respectively, reducing the gap with the Western Cape. Says Dr Golding: 'Reviewing the same provinces over the first half of 2025, while national HPI has averaged +6.1%, regional performances range from +7.7% in the Western Cape to +4.25% in KwaZulu-Natal and +4.17% in Gauteng. Notably for KZN, this represents the strongest growth in house prices since 2021, while in Gauteng it matches the post-pandemic rebound.' According to the Index, house price inflation in all but the upper price band continues to gather momentum. House price inflation in the price band below R1m has outpaced growth in prices in all higher price bands since late-2024. SOURCE: Pam Golding Residential Property Index Coastal vs non-coastal House price inflation for coastal properties, which Lightstone defines as any property located within 500 metres of the coastline, continues to outpace the growth in prices for properties located further inland. Says Dr Golding: 'In June, the recovery in coastal house prices continues to outpace the rebound in non-coastal HPI, with prices rising by +6.2% and +4.2%, resulting in a widening of the coastal price premium to +2%. 'The coastal price premium has risen from a low of +1.3% in October 2024 to +2% in June, averaging 1.7% during the first half of 2025.' Sectional title vs freehold According to Lightstone statistics, the recovery in sectional title HPI also continues, with annual growth in prices rising by +4.2% in June, while freehold HPI rose to 5% above year-earlier levels. During H1 2025, freehold HPI averaged 4.5% compared to 3.7% for sectional title. Major metro housing markets The recovery in national metro housing markets, which initially started in Cape Town, has now become broad based, with all major metro markets now registering a rebound in house prices. Notably, Cape Town continues to outperform other metro markets by a significant margin, rising by +6.9% in June, followed by +3.0% in Tshwane and +2.8% in eThekwini. This trend is also evident in H1 2025, with Cape Town outperforming other metro markets by a wide margin. Sales in upper price bands rise, even as total sales activity declines Having peaked in 2022, total residential property sales activity over the past decade (financial year 2015 to FY 2025) has declined, almost entirely due to a reduction in sales in the price band below R1.5m. Adds Dr Golding: 'However, even as the overall number of homes sold has declined, mainly attributable to the decline in homes priced below R1.5m, in certain price bands – including the upper bands – the actual number has risen. There has been a marked increase in the actual number of homes sold in the R1.5m – R3m and the R3m – R6m price bands. Representing smaller markets, the price bands from R6m – R12m, R12m – R20m, and R20m – R35m, have also registered an increase in units sold.' Issued by Gaye de Villiers on behalf of Pam Golding Properties
The Citizen
12-06-2025
- Business
- The Citizen
Housing assets reflect a further recovery in price appreciation
Widely considered a mainstream asset class, offering considerable upside potential in terms of capital appreciation over the medium to longer term as well as a favourable rental income stream, residential property owners and investors will be encouraged by the further recovery in house price appreciation in South Africa. Says Dr Andrew Golding, chief executive of the Pam Golding Property group: 'On the back of the recently-announced (29 May 2025) reduction in the repo rate, further positive news for homeowners and residential property investors is that the recovery in house price inflation (HPI) continues to gather momentum, soaring to a robust 7.2% in April 2025 from year-earlier levels, according to the latest Pam Golding Residential Property Index. 'This surge in appreciation in housing assets is well above the two previous cyclical peaks and the strongest growth rate in national house prices since late-2007. For 2025 to date, national HPI has averaged 6.4% which is double the average for 2024 – which was 3.2%. 'Furthermore, given that inflation remains anchored below the lower 3% inflation target limit, real, inflation-adjusted house prices rose by +4.4% in April, which is an almost 20-year high. For 2025 to date, real house price inflation has averaged 3.4%.' According to the Pam Golding Residential Property Index, growth in house prices has accelerated across all three major regions. Although the recovery in Western Cape HPI leads the way at +7.3%, the strengthening rebound in Gauteng of +5.4% and KwaZulu-Natal's +4.8% is closing the gap, while the recovery in Eastern Cape HPI continues to track the national recovery, with prices rising by +3.2% in April. Meanwhile, revised growth in house prices in Mpumalanga peaked at +3.3% in early-2025 before easing marginally to +3.25% last month (April). In regard to coastal vs non-coastal homes, revised coastal HPI has rebounded ahead of non-coastal house prices, rising by +5.0% and +3.7% respectively in April. Interestingly, while the recovery in non-coastal HPI began in early-2024, in contrast, growth in revised coastal house prices only began to accelerate once more in Q3 2024. Meanwhile, a strong recovery in sectional title house prices resulted in a convergence with freehold HPI at +3.9% in April. Adds Dr Golding: 'Regionally, Cape Town continues to outperform other major metro housing markets by a wide margin, rising by +6.2% in April, followed by an upwardly revised Tshwane at +2.4%, while the recovery in Johannesburg HPI of +1.8% continues to strengthen in tandem with eThekwini at +1.9% – the ninth consecutive month in positive territory for the latter. 'Positively, house price inflation in the coastal market in Nelson Mandela Bay rose to +3.0% in April.' Issued by Gaye de Villiers on behalf of Pam Golding Properties
