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Drought likely part of 'cooling' Western Cape house price growth - expert
Cape Town - The severe drought in the Western Cape could be starting to play a "cooling" role on its economy as well as on its housing market, according to John Loos, household and property sector strategist at FNB.
The once lively house price growth in the Western Cape has slowed to nothing more than a "pedestrian" pace, in his view, in line with the rest of the country.
The FNB Western Cape House Price Index has slowed to what Loos describes as a "lowly" 1.5% year-on-year (y/y) growth for the first quarter of 2018. House price growth in the province is now below the national average house price growth rate of 2.6% for the first quarter.
"Not long ago, the Western Cape's relatively strong house price growth was a boost to the national average price growth," says Loos.
For him this recent "normalisation" of house price growth in the Western Cape has become a key additional constraint on the national house price growth rate.
Read more: Drought likely part of 'cooling' Western Cape house price growth - expert
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