Soweto sees property prices double in last decade
Soweto has seen an outstanding increase in demand as houses in the area appeal to first-time buyers looking to looking for affordable options
One of the most well-known townships in Johannesburg, Soweto, has seen property prices double in the last 10 years. This is due to the growth in demand for property in this area.
SOWETO PROPERTY PRICES SHOOT UP
Soweto has experienced a significant increase in property prices over the past decade. In fact, homes in this area have doubled in price, making it one of the fastest appreciating neighbourhoods in the city.
Khosi Sibiya and Phindi Mphahlele from Seeff noted that property values in the area have grown at a much faster rate compared to the rest of Johannesburg. “While the majority of properties are freestanding, there is growing interest in estates and sectional titles as urbanisation and densification continue,” said Khosi and Phindi.
Soweto is on the southwestern outskirts of Johannesburg and is home to an estimated 1.3-million people. This population is almost a third of the city’s total 4.4-million population, according to financialmail.
WHO IS BUYING?
According to Business Tech, there were over 2 000 property transactions in Soweto worth over R1.1 billion in the past year alone. Interestingly, over 40% of buyers were under the age of 35. Most of them were first-time buyers in the market. This indicates a growing trend of young people entering the property market in this township.
The highest annual sales value in the history of Soweto was recorded last year, according to financialmail.
Even though prices have been increasing at a steady pace, property prices are still affordable. According to Khosi and Phindi, one can find more square meterage for your money in this area compared to many other areas.
The vast majority of sales falls below R750 000 and nearly all fall below R1.5 million. There have only been 11 property sales for more than R3 million in Soweto in the past year, according to IOL.
WHY SOWETO?
Soweto’s appeal as a residential neighbourhood stems from its affordability and excellent amenities. Despite being a township, Soweto is the largest one in Africa, consisting of 37 suburbs and over 186 000 properties. This growth in housing options has made Soweto an attractive choice for many individuals and families. The proximity to schools, transportation, and universities like Wits and the University of Johannesburg, has made it a popular location for rentals. Many tenants who start by renting in Soweto eventually become homeowners in the area as their economic circumstances improve.