Tshwane Housing Market Report - 2018
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 the City of Tshwane, Gauteng, (commonly known as Pretoria) 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 R501.1 billion in 2017, nearly half (49%) of Tshwane’s residential properties are valued R600 000 or less, and 23% of Tshwane’s residential properties are government-subsidised. In 2017 there were just 7 054 new properties added to the Deeds Registry, compared to 18 244 resale transactions in that year.
Notably, growth in the number of properties at the lower end of the market is almost entirely due to government housing programmes: of the 2 161 new residential properties valued below R300 000 that were registered in 2017, 93% (2 002) were government-subsidised properties (GSP). The report also indicates that 101 285 GSP, or 79% of all GSP on the deeds registry in Tshwane, are more than 8 years old and are thus eligible to be sold legally as part of the resale market.
CAHF’s work in South Africa is supported by:
