With support from the Cities Support Programme of National Treasury, the Citymark project undertakes analysis of South Africa’s residential property markets, with a particular focus on the lower end of the market. Utilising title deeds data obtained from Lightstone Pty Ltd, the analysis separates the market into four segments, allowing the careful examination of the differentiated performance of the entry level (under R300 000), affordable (R300 000 – R600 000), conventional (R600 000 – R1.2m) and high end (over R1.2m) markets. By merging suburb-level data from the deeds registry with StatsSA subplace data from the 2011 Census, we can undertake detailed, spatial analysis of residential property markets.
As part of our series of reports on the eight metros in South Africa, this report on the residential property market in Ekurhuleni, Gauteng, provides a detailed analysis of government-sponsored properties, freehold and sectional title homes, new and resale transactions, lending, and first-time homeowners.
The report indicates that Ekurhuleni’s residential property market is primarily affordable with 60% of residential properties valued less than R600 000. 28% of properties in the metro have been financed by the state as part of the national housing subsidy programme. In 2017, 71% of all residential transactions (15 054) were on the resale market, compared to only 6 131 new registrations on the deeds registry in that year. However only 19% of new transactions in 2017 were in the entry-level market below R300 000. Of the 1 162 new transactions in this segment, 96% were government-subsidised properties, pointing to the key role played by government housing programmes at the lower end of the residential property market.
CAHF’s work in South Africa is supported by: