Standard Bank: House Prices Will Keep On Dropping

No respite soon for falling house prices

The residential property market is unlikely to escape its quagmire soon despite interest rates being near or at their peak in the monetary policy tightening cycle.

Sizwe Nxedlana, a Standard Bank property economist, said residential property prices were unlikely to recover in the near term due to the precarious state of household finances.

Nxedlana said the residential property market was driven by interest rates, inflation, employment growth and consumer sentiment. These drivers suggested the market would stay weak over the next year.