The first quarter of 2016 saw an uptick in house prices during the first quarter of 2016, with the movement representing a reversal of the mild decline the rate of growth seen in the previous quarter.
There has been a sense of taste consistency amongst home buyers. The limited change in reference characteristics during the first Quarter of 2016 was reflected in the influencers of price movements remaining the size of the house (as measured by plinth area, number of bedrooms, bathrooms, and DSQ).
The extent of market activity reflects a clear leaning towards the upper end. A reflection of the fact that the lower end of the market is characterised by supply constraints.
The fourth quarter of 2015 represented the sustenance of the stability in house prices. The quarter saw prices rise by 1.14 percent compared to the 1.25 percent increase during the third quarter.
Demand for houses on offer continued to be influenced by the location of the house (therefore the kind of social amenities available), a preference for gated communities (implying the importance of convenience and security), and the characteristics that will be appealing to the increasingly discerning households.
The preference of apartment to bungalows and maisonettes is reflected in their relatively higher price movements than those of the other two house categories. With apartments targeting the middle class, their popularity is a function of their relative affordability.