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.
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, Eastern Cape, provides a detailed analysis of government-sponsored properties, freehold and sectional title homes, new and resale transactions, lending, and first-time homeowners. Given the COVID-19 pandemic, the report includes a high-level analysis of the impact of COVID-19 on the property market.
Nelson Mandela Bay’s residential property market was valued at R136.7 billion in 2019, with 67% of properties valued at R600 000 or less. 42% are government-subsidised—the largest share of all the metros. The contribution of government housing (75%) was evident in the entry market. Only 9% of total transactions were new build properties, while the resale market was more active. FNB and Standard Bank issued the largest share of their bonded transactions for properties valued below R300 000. Overall, bonded transactions in the entry market are expected to remain low due to unequal economic impacts of the COVID-19 pandemic.
CAHF’s work in South Africa is supported by: