James de Villiers , Business Insider SA Jun 05, 2019, 03:59 PM
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residential property prices in South Africa have dropped when corrected for inflation. And the situation is only set to improve once oversupply in the market has been reduced. The FNB Property Barometer for June, released on Wednesday, showed that property prices increased by only 3.3% year-on-year in May, while South Africa’s latest consumer price index (CPI) inflation stood at 4.5%
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“We read [this] as a continuation of a downward adjustment [of property value growth] in line with subdued economic activity and lower disposable income levels,” FNB’s Siphamandla Mkhwanazi said.
before the elections has slightly lifted, which will improve sentiment, it will likely take longer before that filters through to economic activity such as property purchases, he said. “For the residential property market, excess supply in the higher-end segments [also] must clear before we see an overall house price acceleration.”
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