While Cape Town generally shows consistent growth in property values above the national average, Limpopo overtook it in terms of inflationary growth in October 2019, according to Lightstone’s latest data
Limpopo boasted a 5.9% annual growth with an increase in high-end properties, most of which have become second homes to affluent Gauteng residents. The increase in mining activity in the province has also had a positive effect on property developments in the area.
Highest valued suburbs
The most expensive residential property sold was R45.7 million, while the most expensive commercial property sold for R365.5 million. Hospitaalpark in Limpopo, Havenside in KwaZulu-Natal and Hartzenbergfontein AH in Gauteng took the top three spots based on growth inflation over the last year.
Noordhoek in the Western Cape achieved the average highest transaction prices across the year at R4.5 million.
The Johannesburg suburbs of Sandhurst, Westcliff and Blair Atholl had the highest average value. In Cape Town, Llandudno, De Bosch and Constantia emerged as the suburbs with the highest average value. Umhlanga in KwaZulu-Natal also features among the top 10 suburbs with the highest average value.
The low and mid-value wealth segment continues to challenge the trend by showing annual growth of more than 4% whilst other wealth segments perform below this.
Looking specifically at property, single females dominated property sales in 2017, 2018 and 2019, compared to single men and even married couples. The average price of homes purchased by single females is around R800,000.
The inland municipalities of Ekurhuleni, City of Tshwane and City of Johannesburg continue at a stable rate of between 1% and 4%, whereas coastal municipalities generally perform above this range.
Good Governance Africa (GCA) rated Mossel Bay in the Western Cape as the best-run municipality in South Africa in 2019. This coastal town has 248 133 properties, and 15 390 property transactions took place over the last five years. The value of properties in the area has enjoyed a steady increase, with freehold properties making up the largest percentage of the property market with 65.9%, followed by estates with 18.92% and sectional title units with 15.1%.
Information in this article was sourced from businesstech.co.za