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 five segments, allowing the careful examination of the differentiated performance of the entry level (under R300 000), affordable (R300 000 – R600 000), conventional (R600 000 – R900 000), high-end (R900 000 – R1.2m) and luxury (over R1.2m) 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. Given the COVID-19 pandemic, the report includes a high-level analysis of the impact of COVID-19 on the property market.
Ekurhuleni’s property market was valued at R469.5 billion in 2019—the fourth highest amongst the 8 metros. The metro also had the largest share (35%) of properties valued between R300 000 and R600 00 (affordable market). 28% of properties in the metro were financed by the state as part of government’s subsidy programme. A great majority (97%) of new transactions by first-time homeowners in the entry market were also government subsidised. In 2019, the majority (71% or 15 288) of residential transactions were resale, with 4% of resale transactions in the entry market (below R300 000). Only 15% of resale transactions below R300 000 were bonded, compared to 74% in the luxury market (R1.2 million or more).
CAHF’s work in South Africa is supported by: