December saw the South African house prices rising for the second month in a row, according to First National Bank (FNB).

December figures showed an annual 2.7% increase, after seeing 1.4% growth in November. In 2009 however, average prices were 3.9% down on those in 2008.

John Loos, home loan strategist at FNB, says that this is a positive sign for the property industry looking ahead in 2010. He also noted that the soccer World Cup was unlikely to have a major effect on property prices, with most buyers likely to be South Africans looking for a place to live.

Reported by Bloomberg