Cape Town – The Western Cape housing market is flourishing, with its double-digit house price growth, while others have been languishing in single digits.
According to the latest Property Barometer report regarding the June FNB House Price Index, the Western Cape has been highlighted as the major region that has really “bucked the trend” in terms of average house price growth.
For the entire second quarter of 2016, the national average house price inflation rate was 7.1% year-on-year (y/y), up from 6.4% in the first quarter.
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By comparison, the Western Cape Province saw a far higher 12.1% y/y house price inflation, up further from 11.4% in the first quarter, and representing the fifth consecutive quarter of acceleration.
“The province’s hard-earned reputation as well-run, and a place with the combination of significant economic opportunity plus good lifestyle, has boosted confidence towards it amongst certain property investors, while also attracting a strong net inward migration of repeat home buyers in recent years,” explained John Loos, household and property sector strategist at FNB.