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 the City of Cape Town, Western Cape, provides a detailed analysis of government-sponsored properties, freehold and sectional title homes, new and resale transactions, lending, and first-time homeowners.
With a total value of R1.009 billion in 2017, Cape Town’s property market is less affordable, with only 42% of all residential properties worth less than R600 000. Houses built through government’s housing programmes make up 23% of all residential properties, and 82% of all entry market of properties valued less than R300 000. While the number of new and resale transactions has been increasing at the upper end of the market, the number of entry market transactions has slowed. In 2017, there were 27 676 resale transactions in Cape Town, 5% less than the previous year.
CAHF’s work in South Africa is supported by: