Cape Town Property Prices on the Increase

After taking a steep dip in 2009, house prices in Capestatistics - an average house in Capetown cost R1.11
Town are slowly on the increase, statistics from Absamillion, indicating an increase of 1.4% on the last quarter
Home Loans show.of 2008. This is showing that the housing market is
While house prices declined in all provinces,slowly getting out of the doldrums, with banks'
metropolitan areas and coastal regions in real terms inforecasting growth for 2010 of between 6% and 8%.
2009, the Western Cape experienced one of theIn the middle segment, or houses between 80 and 400
sharpest declines with a 7.6% decrease in real termssquare metres, the average CapeTown house cost
during the year, according to Absa's latest statistics.nearly R1.7 million by the end of 2009, and
In Capetown, house prices were down 0.7% in nominalimprovement of 6.1% compared to the end of 2008.
terms, and 7.3% in real terms. Of all metropolitan areasInvestors are also returning to the Cape Town
in the country, only the greater Johannesburg areaproperty market to buy prime property at good prices
performed better than the Cape Town propertybefore the market takes off again. In addition,
market with nominal house price growth of 2.8% lastincreased lending from banks and relatively low interest
year.rates are also expected to boost the market this year.
In the last quarter of 2009 - the latest available