House Price Indices
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Lightstone's House Price Indices are based on globally accepted statistical principles with broad application in real estate and property finance. Lightstone applies a 'repeat sales' methodology as opposed to a general 'average house price' methodology. The benefit of the repeat sales methodology is that inflation and trends are based on properties which have repeatedly transacted in a certain time period and are less influenced by the mix of transacting properties, as is the case with an average house price approach.
Lightstone collates and analyses data from official sources such as the Deeds Office registry and Surveyor General regarding residential property transfers and delivers the results on a monthly basis via the House Price Index report.
The House Price Index highlights the monthly and annual inflation for the following categories:
Current annual inflation rate is 4.55% and monthly is 0.36%.
April 2022
National year-on-year house price inflation is at 4.55%, having decreased consistently since early 2021. Annual inflation remained steady in Mpumalanga and North West, increased in Limpopo and the Northern Cape, and decreased in the Eastern Cape, Free State, Gauteng, KwaZulu-Natal and the Western Cape. Annual inflation in the low-value segment remains higher than that in other segments, but the magnitude of the difference has decreased significantly; inflation for properties in Low Value markets was 5.8%, compared to 5% for properties in Mid Value markets.
Current annual inflation rate is 4.51% and monthly is 0.35%.
March 2022
National year-on-year house price inflation is at 4.51%, having decreased consistently since early 2021. Annual inflation remained steady in Limpopo and Mpumalanga, increased in North West and the Northern Cape, and decreased in the Eastern Cape, Free State, Gauteng, KwaZulu-Natal and the Western Cape. Annual inflation in the Low Value segment remains higher than that in other segments, but the magnitude of the difference has decreased; inflation for properties classified in Low Value markets was 6.8% as compared to 4.8% for properties classified in Mid Value markets.
Current annual property inflation rate is 4.34% and monthly is 0.31%.
February 2022
National year-on-year house price inflation is at 4.34%, having decreased consistently since early 2021. Annual property inflation remained steady in Gauteng and the Western Cape, increased in Limpopo, North West and the Northern Cape, and decreased in the Eastern Cape, Free State, KwaZulu-Natal and Mpumalanga. Annual property inflation in the Low Value segment remains higher than that in other segments. The annual property inflation rate for this segment is currently at 8%, almost double that of the Mid Value segment (4.7%).
Current annual inflation rate is 4.35% and monthly is 0.25%.
January 2022
National year-on-year house price inflation is at 4.35%, marking a 4th consecutive month of a 5%-or-under growth in prices. Inflation remained steady in the Eastern Cape, Gauteng, Limpopo and Mpumalanga; increased in the North West, Northern Cape and Western Cape; and decreased in the Free State and KwaZulu-Natal. Prices in the Low Value segment continue to outgrow those in the higher-value segments. The inflation rate for this segment is currently at 9%, almost double that of the Mid Value segment at 4.9%.
Current annual inflation rate is 4.57% and monthly is 0.29%.
December 2021
National year-on-year house price inflation is at 4.6%, marking a third consecutive month under the 5% growth mark. Inflation grew or remained steady in most provinces, with the exception of Mpumalanga which saw a slight decrease. Prices in the Low Value segment continue to outgrow those in the higher value segments. The current inflation rate for this segment is currently at 9.6%, almost double that of the Mid Value segment (5.1%).
Current annual inflation rate is 4.76% and monthly is 0.30%.
November 2021
National year-on-year house price inflation is at 4.7%, marking a third consecutive month of 5%-or-under growth. Inflation across the provinces is a bit of a mixed bag, with the Eastern Cape, Free State, Gauteng and Limpopo all trending down, KwaZulu-Natal, the North West and Western Cape on the up, and Mpumalanga and the Northern Cape remaining unchanged from last month. Inflation in the Low Value segment continues to outgrow that of its higher value counterparts, with prices currently growing at 10.4%, almost double the growth of the Mid Value segment (5.3%).
Current annual inflation rate is 4.76% and monthly is 0.30%.
October 2021
Inflation continues to grow across most of the provinces, with the exceptions being the North West which has come in lower than last month, and Mpumalanga and KwaZulu-Natal which have both remained steady. Inflation in the Low Value segment continues to outgrow that of its higher value counterparts, with prices currently growing at 10.7%, almost double the growth of the Mid Value segment (5.4%).
Current annual inflation rate is 4.89% and monthly is 0.32%.
September 2021
National year-on-year house price inflation is at 4.89%, dipping below the 5% mark for the first time since March. Inflation continues to grow across most of the provinces, with the exceptions being Limpopo which has again come in lower than last month, and Mpumalanga and the North West which have both remained steady.
Current annual inflation rate is 5.03% and monthly is 0.34%.
August 2021
National year-on-year house price inflation is at 5.03%, marginally down from the five-year record high recorded in May and June. Inflation has been rallying up across all nine provinces except for Limpopo which has experienced a slight drop-off from last month.
Current annual inflation rate is 5.07% and monthly is 0.39%.
July 2021
Inflation has been rallying up across all provinces except the Western Cape which corrected for a while and is now slowly catching up to the rest.
Current annual inflation rate is 4.90% and monthly is 0.40%.
June 2021
Residential property price growth continues to accelerate with all provincial indices in an upward trajectory. This rolls up to an overall national inflation of 4.9%, a 0.3% increase from last month.
Current annual inflation rate is 4.56% and monthly is 0.38%.
May 2021
Annual house price inflation was recorded at 4.6% at the end of April 2021, another positive month-to-month increase. We continue to see a positive impact of the favourable interest rates across all segments.
Current annual inflation rate is 4.13% and monthly is 0.34%.
April 2021
The historically low interest rates have had an overall positive impact on the property market from a performance perspective where we now see most of our provinces breaking above their five-year highs.
Annual house price inflation was recorded at 4.0% at the end of February 2021.
March 2021
This signifies yet another positive increase from the previous month.
National house price inflation was 3.5% as at the end of January 2021.
February 2021
Contrary to expectations housing prices did not crash during the year. In fact, the property market recovered.
National inflation rate at 3.05%
January 2021
A few general observations can be made about the final inflation figure for 2020. Contrary to expectations housing prices did not crash during the year.
