South Africa

Joburg property market bounces back – but still far behind Cape Town

Johannesburg’s property market is showing signs of a resurgence, with increased enquiries for luxury homes in affluent areas and sales over R20 million being concluded. 

This is feedback from Pam Golding CEO, Dr Andrew Golding, who said the country’s outlook on property is improving. 

Against the backdrop of a subdued economic growth rate, household finances under pressure, and rising interest rates, activity in South Africa’s property market has been subdued in 2023. 

According to Lightstone, total sales volume during the first three quarters of the year totalled 167,404 transactions, which is nearly 20% below the total sales during the same period in 2022 and 5.5% below the same period in 2019. 

However, Golding said that, in contrast, the high-end, luxury residential market continues to grow strongly. 

Pam Golding Properties achieved a 30% increase in unit sales over the previous year, with home sales upwards of R80 million.

“Surprisingly, and as an indication of what we believe is the early signs of the resurgence of the Johannesburg market, we are experiencing an increase in enquiries for luxury homes in areas such as Sandhurst, Westcliff and Bryanston,” Golding said. 

He said the company has had multiple sales over R20 million concluded.

 A highlight in this regard was a successfully concluded sale of R54 million in Waterfall Equestrian Estate in Midrand. 

A noticeable trend that bodes well for the market is in the suburb of Houghton, where older properties are being acquired, consolidated, and redeveloped into luxury clusters or high-end sectional title units. 

He said that locations offering prestige, top-notch security and a luxurious lifestyle are in high demand. 

However, demand for luxury properties in Joburg is still far behind the demand in Cape Town and the Western Cape. 

Pam Golding concluded significant high-end sales in Cape Town, including a R90 million transaction and a R56.5 million sale in Bishopscourt, two bungalows in Clifton at over R30 million each and other top-end houses and luxury apartments sold in Camps Bay and Clifton.

This was coupled with a buoyant luxury market in Constantia, Bishopscourt, and surrounding areas, with numerous sales in the R20 million to R40 million price range. 

Other coastal areas have followed this trend, particularly in the Western Cape. 

The data collected by Stats SA shows the Western Cape’s growth, indicating that the value of building plans in the province overtook Gauteng for the first time in 2022.

Source: Stats SA / Pam Golding


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