Selling in order to downscale due to financial pressure remained extremely high in importance, at 40 percent of total selling, according to agents surveyed. Seen on a two quarter moving average basis, the percentage was still extreme at 37 percent.

There seems little doubt that many of the Tshwane Metro?s residents still experience significant financial pressure.

Simultaneously, selling in order to upgrade remained very low at five percent of total selling. Therefore, despite improving demand for property, it is plausible to believe that something of an oversupply probably still exists as a result of ongoing financial pressure, relieved in part by interest rate cuts but not helped by a severe recession.

As a percentage of total selling, emigration selling in Tshwane showed a massive surge during 2008, similar to the trend in other metros. After a peak of 21 percent in the second quarter of 2008, there has been a broad decline in emigration selling?s significance to only two percent of total selling by the third quarter of this year, according to the estate agents surveyed.

Oversupplies and widespread price deflation

Despite some improvement in residential demand in recent times, oversupplies on the market were still significant as at the second quarter (Deeds data runs a bit behind so third quarter results are not yet available), resulting in widespread price decline continuing across much of the Tshwane region.

• The Tshwane average house price (R746 683) showed a -5.2 percent year-on-year decline in the second quarter, worse than the minus four percent of the previous quarter.

• The Acacia region (average price = R727 787) showed a year-on-year price decline of -9.2 percent in the second quarter, down from a -7.9 percent deflation rate in the previous quarter.

• The Centurion area?s (average price = R861 310) average price fell by -8.7 percent, worse than the -6.2 percent of the first quarter.

• The Pretoria area (average price = R798 737) experienced price deflation of -3.5 percent year-on-year in the second quarter, worse than the -2.7 percent of the first quarter.

• Tshwane Townships (average price = R284 757) were the only major region of Tshwane showing slight price inflation to the tune of +1.5 percent year-on-year in the second quarter, but the deceleration in inflation continues, having declined from +3.1 percent in the previous quarter.