As part of our series of reports on the eight metros in South Africa, this report on the residential property market in Mangaung in the Free State, provides a detailed analysis of government-sponsored properties, freehold and sectional title homes, new and resale transactions, lending, and first-time homeowners–based on analysis of deeds data as of 30 June 2021. As of June 2021, the total value Mangaung’s residential property market was valued at R92.84 billion, the second smallest among the eight metros. In Mangaung, 71% of residential properties were valued below R600 000, and 36% of houses were government-subsidized properties. Mangaung’s mortgage market comprised 38 673 outstanding mortgages in 2020, while the size of the loan book was estimated to be R19,.7 billion.
The resale market in the metro is more active than the market for new build, constituting 82% of all transactions in 2020. From 2014 – 2020, only 101 homes were added to the deeds registry in the entry market, with only 18 being recorded in 2020. Approximately 1 403 households became homeowners for the first time in 2020, the first year of the pandemic—a marginal increase from 2019.
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.
CAHF’s work in South Africa is supported by: