Although house price deflation was widespread in many parts of Cape Town in the second quarter of 2009 (using deeds data to estimate), there were indeed a few areas that appeared to have started diminishing year-on-year price deflation as demand picked up:

• Cape Town-Fishoek-Simonstown (average price = R1.137-million) showed a slight price deflation of -0.4 percent y/y in Q2 2009. This means that, to date, this sub-region appears to have experienced the least price deflation of any of the metro?s sub-regions and it is believed that land scarcity around Table Mountain has contributed to this through preventing a major oversupply of new stock from having been created during the property boom years.

• Out to the North of the metro, where land is seemingly more plentiful, and a major supply of new stock was created in the boom years, price deflation appears more widespread. Milnerton-Melkbosstrand (average price = R774 659) showed price deflation of -4.8 percent y/y in Q2 2009, while Goodwood-Parow-Bellville-Kuilsriver (average price = R811 655) showed price deflation of -3.2 percent y/y. Brackenfell-Kraaifontein-Durbanville (avgerage price = R773 467) showed deflation of -3.1 percent y/y. However, all three areas? deflation rates, while still significant, reflected improvements on the previous quarter.

• Of the former apartheid-era 'township' areas, the Cape Metro former coloured areas (avgerage price = R279 990) showed price deflation of -3.5 percent y/y in Q2 2009. The former black township areas of the Khayelitsha-Gugulethu region (avgerage price = R228 380) still showed huge price inflation of +26.6 percent, although decelerating.

• The Cape Metro as a whole (avgerage price = R881 102) showed price deflation of -1.5 percent y/y in Q2 2009

Interpretation/conclusion on page three...