With a shortage of supply, the South African property market was considered a sellers market this time last year. However this is no longer the case according to research conducted by South Africas First National Bank (FNB).

The report shows that almost half (47%) of sellers did not get their asking price in the final quarter of last year, up from about 30% who failed to do so in the first quarter of 2004.

Ed Grondel, CEO of FNB Homeloans, said: "Twelve months ago it was a sellers market. Its (now) a good balance. Its a healthy market. There is now more supply and it is catching up with demand."

Research also shows that 10% of coastal properties in SA are bought by foreigners.