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 Tshwane, Gauteng, 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.
In 2019, City of Tshwane’s residential property market was valued at 536.8 billion. 41% of the city’s residential properties were valued below R600 000. Government subsidised housing accounted for most properties in this segment— 75% in the entry market and 20% in the affordable segment. The new build market has consistently recorded fewer transactions since 2015. 73% of all residential transactions were recorded in the resale market, where 65% of first-time homeowners purchased their homes. The resale market also recorded the most (68%) bonded transactions — only 1% of resale transactions in the entry market were bonded in 2019, while 45% in the luxury market were bonded.
CAHF’s work in South Africa is supported by: