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 Buffalo City, Eastern Cape, 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.
Across the eight metros, Buffalo City had the smallest residential property market, in terms of number of properties (129 900) and total value (R82.6bn) in 2019. 32% of residential properties were valued under R300 000, and 32% valued between R300 000 – R600 000. More than half (59%) of stock in the entry market, and 32% in the affordable market, were government-subsidised. In BCM the new build market accounted for only 13% of total new transactions in 2019. Resale transactions largely occurred in luxury and conventional markets, where banks issued the most bonds.
CAHF’s work in South Africa is supported by: