According to StatsSA’s latest Residential Property Price Index (RPPI), South Africa’s residential property prices have increased by an average of 23.8% from 2019 to 2024, with an annual rise of 4.8%. The Western Cape outperformed, experiencing a significant 35.5% rise, making it the leader in property price growth among provinces. In contrast, the Northern Cape saw the slowest growth, with only a 0.9% increase, and Gauteng’s prices rose by 16.4%, below the national average. Notably, the Northern Cape and Limpopo saw property prices drop by 4.8% and 2.3%, respectively, over the past year.

Despite these increases, when adjusting for inflation, the real value of residential properties nationwide has declined by 3.9%, with inflation recorded at 27.7% over the same period. This inflation adjustment reveals that most provinces experienced a loss in real property value, except for the Western Cape, which saw a modest real increase of 7.8%. Mpumalanga’s property values remained stagnant in real terms.

The Oobarometer report from Ooba Home Loans for Q2 2024 confirms this trend, showing minimal nominal price growth for both national and first-time homebuyers at 2.3% and 2.7% year-on-year, respectively. Elevated inflation continues to impact real property price growth negatively. Experts attribute the Western Cape’s real price growth to better service delivery and investment, setting it apart from other provinces where real property values have declined.