The March 2024 Residential Property Price Index from Stats SA reveals an upward trend in national house price inflation, offering some relief to homeowners after a period of flat or declining property prices. The national inflation rate increased to 3.5% from 3.1% in February and marked a significant rise from 2.1% year-on-year in March 2023. This trend contrasts with the lower average inflation of 2.2% in 2023, a year burdened by record load shedding, high inflation, and 15-year high interest rates, which suppressed the property market.

Despite the positive national trend, some metros, including Johannesburg, eThekwini, and Nelson Mandela Bay, have experienced year-on-year declines, reflecting localised challenges like infrastructure collapse and poor governance. Conversely, the Western Cape and North-West lead with the highest inflation rates at 7.7% and 5%, respectively. In contrast, the Northern Cape and Limpopo saw declines in property prices, negatively impacting homeowners in these regions.

Property price inflation also varies by property type and sale category. For first-time sales, Ekurhuleni tops with a 14% inflation rate, while the City of Cape Town leads in resold properties at 5.5%. Sectional titles in Cape Town, Tshwane, and Buffalo City show high inflation, while Buffalo City has the highest for freehold properties at 8.8%.

Experts note an uptick in sales, driven by positive market sentiment despite high interest rates. However, they caution that recovery may be slower compared to global trends.