Year-on-year increases in house prices slowed to 28 percent last month from 35 percent last September, according to the SA Reserve Bank's quarterly bulletin, released on Wednesday.

"Indications of a deceleration in the momentum of property price increases is also evident from the decline in the month-on-month rate of increase in house prices from a most recent high of three percent in January 2004 to one percent in February 2005," it states.

The real estate market remained buoyant during 2004, supported by lower interest rates.

The value of turnover in the real-estate market, measured by transfer duty paid, increased by 54 percent in 2004 — compared to an increase of 29 percent in 2003, the bulletin says.

In January this year, the average level of transfer duty paid increased by 43 percent compared to January 2004.

Sapa

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