Residential property price change in South Africa 2001-2023

The FNB house price change index measures "the rate of change in the prices of individual houses between two points in time, based on when the individual homes are transacted. This means that each house price in any month’s sample is compared with its own previous transaction value. The various price inflation rates of individual homes are then utilized to compile the average price inflation rate of the index over time."

The source adds the following information: "The index is compiled from FNB’s own valuations database, thus based on the residential properties financed by FNB. We apply certain “filters” and cut-offs to eliminate “outliers” in the data. They main ones are as follows: • The maximum price cut-off is R15m, and the lower price cut-off is R20 000. • The top five percent of repeat sales price growth rates, and the bottom five percent of growth rates are excluded from the data set. • Repeat transactions that took place longer than 10 years after the previous transaction on the same home are excluded, as are repeat transactions that took place less than six months after the previous transaction on the same home. • The index is very lightly smoothed using Central Moving Average smoothing technique."