South African housing market faces a bleak outlook

South Africa is facing a bleak outlook for house prices according to new research by Wilhelm Hertzog, an equity analyst at fund manager RE:CM. The report suggests that house prices will struggle to grow because they are still high compared with their historical average.

“The unfortunate news is that it does not look to us like now is a good time to buy South African residential property yet,” Hertzog told OPP this week.

"Working with data available to us, we can make certain inferences about residential property rental yields," said Hertzog. "To us, direct property ownership comes across as somewhat less risky than owning equity in a business, but somewhat more risky than lending money to a creditworthy borrower.”

Source: OPP