The house price index for small-sized houses rose by 5.3% 2014, while the large-sized houses index increased 6.2% (0.4% in real terms). During the 2000 - 2006 housing boom, house prices rose by an average of 20% annually. Riding on the back of an empowered middle class, house price rises peaked in October 2004 with 35.7% annual growth (32.5% in real terms). However in Q1 2008 the boom ground to a halt, following the global financial crisis.
Non-resident investors have to pay Capital Gains Tax when they later sell their properties. The purchaser of the property is required to deduct a prescribed percentage from the proceeds of the sale and remit it directly to the South African Revenue Service before paying the balance to the seller.
South Africa's economy was estimated to have grown by just 1.4% in 2014, after growth of 1.9% in 2013, 2.5% in 2012, 3.6% in 2011, and 3.1% in 2010, according to the IMF.
Reference: Global Property Guide