Research conducted by the Seeff Property Group noted that Johannesburg is the most affordable metro in the country - whether you want to buy or rent.
Moreover, data from Lightstone showed that the average transaction price for Johannesburg is around R1.2 million, and this is below the national average of R1.3 million.
“Comparatively, the national average for Pretoria/Tshwane is slightly above this, and stands at R1.4 million for Durban/eThekwini, based on data for this year,“ the property group said.
The data also noted that around 77% of 2024 transactions have been below the R1.5 million price mark, with around 47% of these below R700,000.
“Only 4.82% of transactions are valued at R3 million and over. The average price for first-time buyer homes is around R700,000 to R800,000, while the average price for luxury homes is R4 million, according to the data,” Seeff said.
Rochelle Holland, the manager for Seeff Johannesburg North-West said that buyers in the mid to lower price categories are more sensitive to the interest rate hikes.
Johannesburg is still a buyers market, according to Holland, and that sellers are now more receptive to offers which reflects a shift in acceptance that the market is still more favourable for buyers.
She also said that she is seeing a good mix of buyers, including investors and cash buyers who are not reliant on home bonds from banks.
In terms of rentals, Holland said that rental prices have remained fairly flat in Johannesburg.
She said that tenants tend to renew their leases when they are placed in well priced properties, rather than moving around.
The average rent for property in South Africa is R8,654 in the first quarter of 2024. This is R301 more than the average rent for the same period last year, according to data from the PayProp Rental Index.
The average rent in the Western Cape is R10,300, according to the data and this makes the province the most expensive area to rent in South Africa.
In the first quarter (Q1) of 2024, rental prices in the Western Cape grew by 4.3% year-on-year which is above the national average of 3.8%.
The average price of rent in Gauteng was R8,943 in the first quarter. The index noted that rental growth in Gauteng is 3.5% for Q1, which is below the national average of 3.8% and slightly lower than the 3.6% growth that was reported in the last quarter.
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