I disagree – it depends exactly on what area is being discussed. These prices are completely out for places like Sea Point or Constantia…this definitely needs to be narrowed down to a specific location.
More accurate would be for ABSA to clarify that this is the average nominal house price for mortgaged houses. Houses bought without a mortgage – indeed without an ABSA mortgage – are not included in this statistic. There’s a lot of nuance we can’t see in the ABSA stats. According to the Affordable Land + Housing Data Centre (www.alhdc.org.za) in Q3 of 2011, a total of 8363 primary mortgages were issued across the entire market (all values). Of these, only 19% of all mortgages were for properties above R500,000. Another 60% were for properties between R250,000 and R500,000; and 20% were for properties below R250,000.
Judy
Kecia Rust