Tuesday, May 10, 2011

House prices hit by cost of living

By Lelethu Mquqo
10 May 2011


The outlook for property prices in South Africa remains gloomy as people struggle to meet rising energy costs, higher petrol prices and steep hikes in food prices.

Absa's house price index shows a decline in all three segments of the market in April.

The bank's property analyst Jacques du Toit says for small houses the drop was 3.5% last month, while in the medium-sized segment, prices declined by point-one percent.

The average price of large houses dropped by 2%.

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