Property owners in Greater Johannesburg have seen the highest returns in South Africa at +8.9% year-on-year to Q4 2009 and was up +2.9% on the previous quarter, whilst owners in the KwaZulu-Natal South Coast region saw property values fall by -20.8%, according to a report by Absa.

Johannesburg was also the best performer of the country’s metropolitan areas, with Durban/Pinetown in KwaZulu-Natal a close second at +7.7% whilst East London in Eastern Cape saw a decrease of -2.6%.

Jacques du Toit, senior property analyst at Absa Home Loans, said: ‘The steady recovery evident in the residential property market since late 2009 is expected to gather further momentum in 2010 as a result of better economic conditions, the lagged effect of lower interest rates and less tight credit conditions. Nominal house price growth of around +6% is currently forecast for 2010, but with a projected average consumer price inflation rate of also +6%, no real price growth is expected this year.’

Coastal property owners across the country appear to have been hit the hardest by the recession, as o verall house prices only increased by a nominal +0.8% year on year, whilst Western Capes West Coast saw house prices decrease by -12.7%, however they did go up by +5.4% on Q3 2009 across all coastal regions.