SOUTH Africa's house price growth eased to an annual 4.3 percent last month, the slowest pace in more than eight years, as rising interest rates curbed demand, according to Absa Group Ltd, the country's biggest mortgage lender.

Growth in house prices eased from a revised 5.5 percent in April, Absa said in an e-mailed statement yesterday. The average price of a house was 960,700 rand (US$122,549) last month.

"Property is under pressure because households are facing affordability constraints due to the effects of higher interest rates," said Jacques du Toit, senior property analyst at Absa in Johannesburg.

"Demand for property has not disappeared but it is facing serious constraints," he said

The South African Reserve Bank has raised interest rates nine times since June 2006.