Property prices tumble, vehicle sales slow

housing dev ngTintswalo Baloyi
JOHANNESBURG , CAJ News – THE price of property has been projected to slow down while vehicle sales are forecast to decline owing to the prevailing economic conditions.

Jacques du Toit, Absa Homeloans analyst, says year-on-year growth in the average nominal value of middle-segment homes in the residential property market showed some improvement up to April 2016, largely as a result of trends in one of the housing segments analysed.

In real terms, after adjustment for the effect of consumer price inflation, house price growth remained on average around the zero level.

“House price growth is forecast to show a marked slowdown towards year-end on the back of trends in and the outlook for the economy and household finances, with some real price deflation projected as a result of expected nominal price growth and inflation trends,” Jacques du Toit, Absa Homeloans analyst, says.

Meanwhile, overall new vehicle sales continue to show strain with a 9,1 year-on-year decline.

April 2016 showed a decline in sales of 15 percent compared to March.

“New passenger vehicles sales also continue on a downward trend with a 13,1 percent year on year decline, mostly driven by pressure on consumer affordability and above inflation car prices. Current strain on car sales not likely to change materially in the short to medium term,” says Nicholas Nkosi, Head of Standard Bank Vehicle and Asset Finance, Retail Banking.

– CAJ News

Short URL: http://cajnewsafrica.com/?p=12972

Posted by on May 10 2016. Filed under Africa & World, Featured, Finance, National, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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