Absa house price indices: 2008 saw the lowest house price growth since 1996

House price trends in 2008

According to Absa’s calculations, nominal annual average house price growth in the middle segment of the market (see explanatory notes) slowed down to below 4% in 2008, which was the lowest price growth recorded since 1996. It was even lower than the growth rate of about 5% registered in 1999 after interest rates were hiked to well above 20% the previous year as a result of the contagion effect of the Asian financial crisis. In real terms, house prices dropped by an average of almost 7% in the period January to November last year.

In December 2008, nominal year-on-year house price growth in all three categories of middle-segment housing (small, medium-sized and large houses) dropped further compared with November, while in real terms, prices were down by almost 10% in November compared with the same month a year ago.

Click here to read the full report (PDF file 89kb)