Wednesday, June 11, 2008

In SA, its all about eye watering inflation

SA house prices nose-dive

Like Australian articles, the South African press has still not been infected completely with "Newspeak". They still call a stinking dead woodchuck under the porch a stinking dead woodchuck. "Johannesburg - Nominal house price growth of between 5% and 6% is projected for 2008, resulting in a price decline of around 4.5% this year, according to the country's biggest mortgage lender Absa. This is taking headline consumer price inflation projections into account, it says."

Posted by last_days_of_disco @ 09:17 PM (747 views)
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8 thoughts on “In SA, its all about eye watering inflation

  • For Christ’s sake!

    We are talking about a country that has 50 murders a day, 150 rapes a day, daily power-supply issues, ethnic minorities hiding in police stations for their own safety, and an average life expectancy of 42. The rainbow nation makes south London look like west Hollywood, and a 5-6% rise or drop doesn’t really mean anything when you are in the murder capital of the world.

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  • planning4acrash says:

    First of all, CPI is not Consumer Price Index. It is the Corporate Price Index. It covers things like computer hardware and hotel bills that affect corporations. It is part of the paraphernalia of Corporatist, or Corporate Fascist regime. The normal feaux index is RPI, but the only real index is the growth in the money supply. All other methods are a tool for inflating to take wealth from the working and middle classes and to keep down wages.

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  • The Absa index referred to is a strange beast and does not seem to be correctly reflecting what is happening on the ground. Agents have double the number of houses for sale than last year but buyers are down 60%. The Standard bank index on the other hand tracks the median and seems to reflect conditions more accurately, and it shows the market is down 16% from peak last June. Add in 11% inflation and that is a 27% real fall which means that SA is now leading the global housing bubble countries down. This is to be expected as SA housing had the biggest housing bubble worldwide in the boom years with properties increasing 400% to 1000% in 10 years.

    Controversy broke out this week when a memo to staff from a leading agent was published in the press warning of a probable 40% house price decline.

    For those interested in more information about the SA market, a robust debate happens regularly between bulls and bears on the imploding property bubble at the forum of http://www.realestateweb.co.za

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  • This contrasts sharply with the following:

    http://www.realestateweb.co.za/realestateweb/view/realestateweb/en/page196?oid=11128&sn=Detail

    Irrespective of this, violent crime statistics aside, SA still looks like Nirvana in comparison to what is happening in the UK

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  • This contrasts sharply with the following:

    http://www.realestateweb.co.za/realestateweb/view/realestateweb/en/page196?oid=11128&sn=Detail

    Irrespective, violent crime statistics aside SA looks like Nirvana in comparison to what is happening to the economy here

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  • last_days_of_disco says:

    @new_order

    Ok, SA has all these problems, but I somehow sense a greater sense of honesty about the way things are reported in SA when it comes to *house prices* — focus on houses. I think the reason may be that the other very obvious problems drive away any pretension when it comes to dealing with the economy and housing prices.

    I am talking about the media, not the political elite. What I am trying to get at is the way its reported. Because the country is less fixated on it, they seem to give it more neutral reporting about this particular issue.

    Its not because SA is in any way morally superior (which I perceive may be the source of your indignant remarks). But I like to give credit where it is due.

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  • last_days_of_disco says:

    @p4c

    You are right about the fake CPI stats though. Inflation is running at between 20-30%. And the people it hurts the most are the poorest. Its not a happy scenario. The rainbow is becoming increasingly dominated by the red end of the spectrum.

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  • new_order said…
    I think the average rate is up to 55 murders a day, plus one out of every 2 women have been raped…
    the real problem to worry about is the cost of living (i.e. when will you me killed or involved in some sort of crime) everything else is trivial…
    trust me, I have lived there for more than 30 years…

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