Johannesburg, the most affordable metro for property buyers and tenants

Source: Supplied. This luxury home in the Eagle Canyon Golf Estate listed at R6.95m was recently sold by Seeff.

Lightstone data shows that the average transaction price for the metro is around R1.2m. This is below the national average of R1.3m. Comparatively, the national average for Pretoria/Tshwane is slightly above this, and stands at R1.4m for Durban/eThekwini based on data for this year.

Greater Johannesburg continues to see the largest influx of people migrating to the big cities in search of economic opportunities, and they are still finding good value. Affordability is a big feature of the Johannesburg property market. The data shows that almost 77% of this year’s transactions have been below the R1.5m price mark with almost half (47%) of these below R700,000.

Only 4.82% of transactions are valued at R3m 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 R4m according to the data.

Luxury home market thrives

Rochelle Holland, manager for Seeff Johannesburg North-West, says that while buyers in the mid to lower-price categories are more sensitive to the interest-rate hikes, the upper end market in estates such as Eagle Canyon has seen excellent sales of luxury homes which have sold for upwards of R6m.

She says it also helps that sellers are now more receptive to offers which reflects a shift in acceptance that the market is still more favourable for buyers. They are still seeing a good mix of buyers, including investors and cash buyers who are not reliant on mortgages.

Luxury homes in the R4.9m to R6.5m range are the most in demand in the Eagle Canyon Estate where Seeff has clinched sales of up to R8m over the last year. Also popular with buyers are clusters, priced from R3m, and sectional titles which are more affordably priced from R1.7m for an upstairs unit, and R2.2m for a ground floor unit with a garden and garages.

Neighbouring suburbs offer value

Neighbouring suburbs such as Honeydew, Wilgeheuwel, Radiokop and Allens Nek offer even better value for buyers, she says. Average family houses in Radiokop and Wilgeheuwel are selling from around R1.5m, larger townhouses from R1.1m, and small units from just R600,000.

The area is an excellent investment and popular for its affordable rentals. Radiokop, Wilgeheuwel and Honeydew, for example boast an average rent of R7,350 per month with properties between R8,000 to R10,000 renting out quite quickly.

Sectional titles in Eagle Canyon between R18,000 to R22,000 per month are also popular. Houses in the estate are renting out for R25,000 to R30,000 with luxury homes ranging up to R45,000 per month based on Seeff rentals achieved.

Rental prices have remained fairly flat, and tenants tend to renew their leases when they are placed in well-priced properties, rather than moving around.