Metros lose out to townships
HOUSE price increases in former black townships again outperformed those of major metro regions.
FNB property sector strategist John Loos said township prices rose by 10.7 percent in the last year.
By contrast, prices in the major metro regions of eThekwini, Cape Town, Nelson Mandela Bay, Ekurhuleni, Johannesburg and Tshwane increased by 5.4 percent over the same period.
The areas which the bank refers to as townships are those formerly classified as “black township areas” under apartheid.
Loos, writing in the bank’s latest property barometer report, said houses in townships remained “the most affordable areas of the market on average”, with an average price of R331 826.
He attributed the increase to high demand, with buyers looking for affordable houses, and a relative shortage of stock.