‘South Africa’s residential property market is the largest component of the South African property market, comprising the majority of property assets within the country, and an important component of household wealth.
The South African deeds registry comprises 6.7 million properties, worth R5.2 trillion. Of this, about 5.8 million registered properties, or 86%, are considered residential, ranging from sectional title and freehold properties, to estates; including government-‐sponsored homes, homes occupied by their owners or rented to others, and holiday homes; and found across the country, from rural areas, to mining towns, to small and secondary cities, to metro municipalities.
The majority of the residential property market – 63% in 2014 – includes homes valued at less than R600 000. Of this, two thirds (or 44% of all properties) are homes that are valued at less than R300 000, of which the majority are estimated to be government sponsored homes: clear evidence of the significance of government’s subsidised housing programme and the sheer volume of property assets transferred to qualifying beneficiaries since 1994.
Almost 60% of the total formal residential property market is found in the eight metro municipalities. While the metros hold more higher-‐value housing than the rest of the country, their affordable market (green and blue) is growing faster than their more expensive markets (orange and red).’
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This newsletter was prepared with the support of the Estate Agency Affairs Board.