Migration trends from Gauteng to other parts of the country – particularly the Western Cape, Eastern Cape and the coastal regions of KwaZulu-Natal – are creating massive property-investment opportunities in South Africa’s economic powerhouse province, with Pretoria in particular performing exceptionally well.
According to Betterbond’s first quarterly report for 2023, from a first time home buyer perspective, it looks at the areas of South Africa where median house prices have increased the most. Here, the Western Cape was the top performing region in 2022/23, but Greater Pretoria was number one in 2021/22.
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For the 12 months ending March 2023, Greater Pretoria was joint second for all buyers and third for first time buyers. Looking at the percentage change in median house prices for all buyers ending March 2022, Greater Pretoria significantly outperformed the rest of the country with a 13% increase in median house prices, followed by the Eastern Cape ( 8%) and Mpumalanga (7%).
Greater Pretoria has confirmed its appeal in terms of home ownership by featuring prominently on these lists.
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Pretoria’s ‘purple patch’
On top of the semigration, the report lists a number of other attractions contributing to Pretoria’s ‘purple patch’ of good fortune, including:
- Top Schools and Universities
- The city is the administrative capital, housing the executive branch of government, government departments, officials and most foreign embassies in South Africa.
- Diverse cultural and lifestyle options such as the Union Buildings, National Botanical Garden, State Theater and Loftus Versfeld
- In October more than 50,000 jacaranda trees adorn the streets, creating a unique natural spectacle in an urban environment
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National trends with home buyers
Looking at national data for home buyers, economist Roelof Botha says the availability of homes for sale has been affected by the construction of new homes (formal building plans approved by municipalities) and by emigration.
“In recent years, supply-side housing has also been constrained by a decline in new residential buildings,” he says.
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“Based on the value of homes built and the median price of homes, the number of new homes coming to market is set to increase from 82,300 in 2019 to 46,400 in 2022”
On the demand side, low interest rates during the pandemic gave a boost to the property market. However, from November 2021 onwards, home-loan applications have declined due to frequent rate hikes. South Africa’s comparatively high interest rates, unlike those of its major trading partners, have been criticized by economists and home buyers alike.
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Source: www.thesouthafrican.com
