The First National Bank (FNB) Former Township House Price Index carved out the “Former Township” regions and compiled an index for these regions. These regions are ones formerly classified as “Black” areas under the Apartheid system, and the purpose has been to observe the price performance as these regions normalize over the long term from “dormitory” towns into ones with greater levels of economic activity within their boundaries.
Recently, the Former Township House Price Index continued to mildly outperform the overall Major Metro Regions in terms of growth, recording 6.1% year-on-year house price growth in the final quarter of 2016. However, the Townships also appear to be feeling the impact of higher interest rates and a sluggish economy, having slowed from a multi-year price growth rate of 12.6% back in the second quarter of 2015. At an average house price of R364,567, the former Townships remain on average the most affordable metro regions.