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 Mangaung, Free State, provides a detailed analysis of government sponsored properties, freehold and sectional title homes, new and resale transactions, lending, first-time homebuyers. The analysis shows that Mangaung’s property market is primarily affordable with 73% of properties worth less than R600 000. About one third of properties in the metro have been financed by the state as part of the national housing subsidy programme. While the resale market is quite active (89% of all residential transactions were resale), there has been a drop in new residential transactions: in 2017 there were only 351 new transactions, of which only 17% were in the affordable market, and only 10 were valued below R300 000 (including 6 government-subsidised units).
CAHF’s work in South Africa is supported by: