Property prices in South Africa drop to lowest in 23 years, report shows

[Nicholas Wallwork]

Residential property prices in South Africa have fallen to their lowest in 23 years as the country’s first recession for 17 years takes its toll on the real estate market.

Unemployment and slowing consumer spending is contributing to the depressed property market, according to the latest price index published by the Absa Group, the country’s biggest mortgage lenders.

The Absa report shows that prices fell 4.4% last month compared with a year ago and it warns that the trend is set to continue even thought the Reserve Bank has cut its benchmark interest rate five times since December, dropping it to 7.5%.

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