Category Archives: Inflation

South African house prices take a battering in dollar terms

So we have been hearing all the good news recently. The broad message? The property market is steadily recovering. Experts have pointed to house price growth in 2013 at 9.92%. This after an almost zero growth 2011 and 2012 was welcome news … Continue reading

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House prices continue to beat inflation, but can this continue?

House prices in South Africa continue to grow strongly in the first quarter of 2014, keeping up the good momentum after a very strong 9.92% growth in 2013. In the first three months of the year (Jan-Mar), YoY growth was 8.65%, 8.46% … Continue reading

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Inflation – how will this impact property investors?

Population expansion, increases in consumption and limited resources are coming together along with climate change to pressure the world – this is likely to lead to more turbulence, currency wars, high inflation and a general erosion of living for almost … Continue reading

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Exploring the relationship between inflation and house prices

Fig 1: CPI inflation v Nominal House Prices South Africa has a history of high inflation. Inflation targeting has successfully brought inflation down to low single digits since 2003. Up until 1993 and at least since 1982, CPI inflation rates … Continue reading

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Do South African house prices always keep up with inflation?

A question that I promised to return to is the effect of inflation on South African house prices. Although we know that property has a built-in inflation hedge, what I wanted to investigate is do South African house prices rise … Continue reading

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Is SA property only useful as a hedge against inflation?

With house prices set to stagnate in terms of real growth over the next 40 years, the attraction of property as an investment class for pure value growth has diminished. Whereas most investors over the past 10 years were in … Continue reading

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