As part of our series of reports on the eight metros in South Africa, this report on the residential property market in Nelson Mandela Metro, 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. Valued at R147.4 billion as of June 2021, Nelson Mandela Bay’s residential market contains 240 887 properties. Of these properties, 6% are valued at R600 000 or less and 42.5% are government-subsidised—the largest share of all the metros. The entry market segment of properties valued under R300 000 is largely constituted by government subsidised properties (75%).
In 2020, only 9.8% of transactions were new build properties, with the majority of transactions in the resale market. However, 2020 saw a 15.2% drop in resale transactions to 5 284, compared to 6 231 in 2019, likely due to COVID lockdowns and their economic impact. Despite record low interest rates, 2 327 households became homeowners for the first time in 2020, which was 12% fewer households than in 2019, prior to the pandemic.
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: