n Management Dynamics : Journal of the Southern African Institute for Management Scientists - Factors that affect South African real estate price growth

Volume 20, Issue 2
  • ISSN : 1019-567X



South African real estate prices have experienced some degree of variability during the past 30 years. The ability to identify indicators that could be used to predict changes in the residential real estate price cycle would aid managers, industry specialists and investors to make informed decisions about the timing of real estate investments. The objective of this study was to identify the relevant indicators of residential real estate prices by considering existing research studies on this topic and assessing their suitability to be used as predictors of future price levels by means of an ordinary least square regression model. The results of this study indicate that eight of the indicators identified from a survey of the literature provide either good or acceptable predictions of future residential real estate cycles. The major contribution of this study is, therefore, that financial decision-making could be improved by focusing on these predictors of future residential real estate prices when considering the merits of an investment in real estate.

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