According to the latest Lightstone residential property index, October 2021 was the third consecutive month in which residential property prices increased by 5% or less.
The report showed that price increases across the provinces differ widely from one province to another.
The Free State, Eastern Cape, Gauteng and Limpopo all trended downwards. KwaZulu-Natal, North West and Western Cape are on the up, while Mpumalanga and Northern Cape remained unchanged from the previous month.
Price growth for lower-priced homes continue to outperform that of higher value segments. Prices increased by 10.4% overall for this segment - almost double the growth of the mid-value segment, where prices rose by just 5.3%. Prices for high value and luxury homes increased by just over 4%.
House price activity
Quoting the Lightstone index, the report says that the total sales recorded during the first half of 2021 - about 128 000 units - is the highest sales number recorded during the first six months of the year over the past five years.
Despite the economy struggling to recover from a severe recession, this shows surprising resilience in the national housing market.
Much of this demand has been driven by local buyers who have identified specific areas of interest and understand that the current market presents opportunities that offer exceptional value for money.
Top performing metros
According to the Lightstone index, the top-performing metro market is Nelson Mandela Bay.