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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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Johannesburg - President Cyril Ramaphosa’s plan to raise over R1trn in new foreign investment has been hailed by economists as the beginning of a “new dawn” for South Africa after years of low growth and policy uncertainty.On Monday,  Read More...

The listeriosis crisis has plunged the country’s pork industry into an overnight crisis, with producer prices having fallen as much as 40%, resulting in millions of rands in losses for pig farmers.One pork processing facility in KwaZulu-Natal is already understood...

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A delegation from ANC headquarters Luthuli House is expected to meet the party's caucus in the North West on Wednesday in an attempt to resolve tension between some provincial leaders, and chairperson Supra Mahumapelo.Several members of the legislature have been...

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The Democratic Alliance has resolved to "protect clause 25 of the Constitution", otherwise known as the "property clause".The DA was one of three parties that opposed a motion in Parliament in February to look at section 25 of the Constitution with a view to amending...

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Cape Town - Disgraced Australian cricketers Steve Smithand David Warner could be on the verge of securing county deals in England.Banned from playing for Australia for a year after their roles in the infamous Newlands ball-tampering saga, Smith and Warner are...

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Gold Coast - South Africa's Chad le Clos likened himself to swimming legend Michael Phelps on Saturday after blasting his way to a hat-trick of Commonwealth Games titles in the 200 metres butterfly.The four-time world champion  Read More...

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