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 Nelson Mandela Bay Metro, Eastern 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 residential property market valued at R125.1 billion in 2017, over half (69%) of Nelson Mandela Bay’s residential properties are valued R600 000 or less. 42% of NMB’s residential properties are government-subsidised which represents the largest share of all the metros. The contribution of government housing programmes is evident in the entry market where 74% of houses are GSP. Of the 143 houses valued below R300 000 that were newly registered in 2017, 98% were government-subsidised properties. Furthermore, there were 771 government-subsidised houses sold in the entry market in 2017, constituting 68% of the resale transactions in this market segment.
CAHF’s work in South Africa is supported by: