Property prices may be increasing across the country as buyers continue to make the most of the lowest interest rates in more than five decades, but there are still areas where the average purchase price is less than R1 million.
“Affordability and access to amenities and economic opportunities are key considerations, especially for first-home buyers. With the current shift to remote working, it is now possible for buyers to consider living further from city centres where property is more expensive,” says Carl Coetzee, CEO of BetterBond.
For the year 2022 to date the residential property market got off to a good start, demonstrating a continuance of the positive sentiment and brisk activity levels experienced during 2021, according to Dr Andrew Golding chief executive of the Pam Golding Property group, which is Savills’ exclusive residential real estate partner in Africa,
He says despite indications that interest rates are on a slow, but steady, upward trajectory, fierce competition between banks for market share ensures a favourable lending environment which, coupled with an ongoing strong demand for homes among first-time and repeat buyers alike, is expected to provide South Africa’s housing market with a solid underpinning during the year ahead.
"From an investment perspective, Lightstone’s forecasted scenarios suggest that home values could rise by between 3.4% and 5.1% in 2022. According to the Pam Golding Residential Property Index, national house price inflation (HPI) averaged at 5.1% last year, compared to 3.7% in 2020 and 2.6% in 2019. The Western Cape region recorded the strongest growth in prices in 2021, at +6.2%, followed by KwaZulu-Natal at +5.3% and Gauteng +4.5%.
Johannesburg certainly has an extensive amount boomed-off areas and estates to suit a wide range of buyers with the average asking price around R1.32 million, showing a decrease of -2% when compared to pre-pandemic period of 2019, according to listings on Property24.
In January the city of Joburg received over 7.5 million pageviews on Property24, and an overall 18.9 million page views for the 3-month period between December 2021 and February 2022.
Here is a snapshot of asking prices in Joburg suburbs.
| 5 Underrated suburbs in Johannesburg | ||
| Suburb | Average Asking price in 2021 | % Difference in Average Asking Price for 2020-2021 |
| Mondeor | 1 375 000 | -5% |
| Brackenhurst | 1 905 000 | 7% |
| Kensington | 1 599 500 | 1% |
| Naturena | 789 500 | -10% |
| Ormonde | 945 000 | 5% |
Source: Property24 Trends Page
“According to RE/MAX business development consultants in the area, a few areas in Johannesburg that are somewhat undervalued considering what they offer in terms of location, good schools, as well as price point include Kensington, Brackenhurst, Brackendowns, Mondeor, Glenanda, Weltevreden Park, and Allens Nek,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
“Firstly Delville, situated right next to Lambton, offers lovely older houses at very reasonable prices. Clients that can’t afford the higher prices of Lambton and Parkhill Gardens find their perfect home in Delville at the price they are able to afford. Prices start from R1 100 000 in this area,” says Nadia Aucamp of RE/MAX All Stars..
“Albemarle is located right next to Alberton and offers plenty entry-level properties in the form of sectional title units. Prices start from R600 000 and it is a popular and cost effective area for first time home buyers that want something more for their budget than what Alberton can offer. Here, we get a few new complexes as well as the older slightly bigger complex or flats,” says Aucamp.
“Lastly, Sunnyridge is an area right next to Bedfordview and has easy access to highways and byways. Prices start from R1.6 million and is an ideal location for families who want to be close to good schools and don’t want to live in central Johannesburg. In this area, you will find older homes with lovely views at exceptionally good value for money.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions
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