South african house prices 'fall in real terms'

The value of residential property in South Africa declined in real terms over the course of 2011.

Global Property Guide explained that, despite the nation's house prices climbing by 2.3 per cent in nominal terms last year, they actually slid by 2.6 per cent in real terms.

According to the publication, this is largely down to rising inflation, which stood at 6.3 per cent for consumer prices in January 2012.

It added that, given the increase in inflation, predictions of house price rises in 2012 of between two and three per cent by the country's Absa bank may be optimistic.

Source: PropertyShowrooms.com