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 Johannesburg, Gauteng, provides a detailed analysis of government-sponsored properties, freehold and sectional title homes, new and resale transactions, lending, and first-time homeowners.
With a residential property market valued at R892.6 billion in 2017, Johannesburg’s residential property market is primarily affordable with 45% of properties worth less than R600 000. The report shows that approximately one quarter (26%) of properties in the metro have been financed by the state as part of the national housing subsidy programme. In 2017, 70% of all residential transactions (24 928) were on the resale market, compared to only 10 842 new registrations on the deeds registry in that year. A total of 2 704 new residential properties valued below R300 000 were registered in 2017, of which, 84% were government-subsidised property.
CAHF’s work in South Africa is supported by: