The value of real estate in South Africa is likely to fall by three per cent in real terms over the course of 2012, it has been predicted.

John Loos, household and property sector strategist at First National Bank (FNB), made the assertion after the FNB House Price Index revealed a "flattening out" of the residential market during 2011.

He explained the three per cent decline is based on consumer price inflation averaging at five per cent over the coming 12 months.

Mr Loos added forecasts of lower global economic growth than previously anticipated, as well as the expectation of only minimal interest rate cuts in South Africa in 2012, have weighed heavily on sentiment in the housing market.

In an interview with The New Age, property analyst at Absa Jacques du Toit agreed that the South African real estate sector will experience a difficult year.

He noted many consumers have been struggling with inflation, which will in turn have an impact on the property market.
 

{loadposition user38} source: http://www.propertyshowrooms.com/south%20africa/property/news/south-african-property-market-slowing-down_311855.html