Here’s what a R1 million house looks like in South Africa’s five biggest cities
According to an April 2017 report by FNB, the average house price across South Africa has increased in some segments by nearly 400% over the past fifteen years.
The report focused on three main segments:
- Small-sized homes – 20-80 square metres
- Medium-sized homes – 80-230 square metres
- Large-sized homes – 230-800 square metres
The small-sized FNB House Price Index has inflated by 395% since the first quarter of 2001. The medium-sized Index is not too far behind with 374.2% cumulative inflation over the same period.
But the large-sized Segment has underperformed by a significant margin, especially since around 2011, cumulatively inflating by a significantly lesser 281.3% since early-2001, FNB said.
Average house price in South Africa by size category
| Price by size | 2013 | 2014 | 2015 | 2016 | Q1/2017 |
|---|---|---|---|---|---|
| Large home |
R1.73 million | R1.81 million | R1.88 million | R1.93 million | R1.98 million |
| year-on-year | 4.7% | 4.5% | 3.7% | 2.5% | 4.1% |
| Medium | R923 602 | R986 092 | R1.05 million | R1.10 million | R1.12 million |
| year-on-year | 4.1% | 6.8% | 6.4% | 5.1% | 2.9% |
| Small home | R478 203 | R522 070 | R565 697 | R612 332 | R635 452 |
| year-on-year | 7.4% | 9.2% | 8.4% | 8.2% | 6.1% |
This data shows that in most areas, South Africans can still expect to buy a medium-sized home, between 80-230 square metres, for around R1.1 million.
Areas in Cape Town and Johannesburg’s wealthiest areas tend to skew this number, but even in these areas pricing is expected to settle within the next few years, said household and property sector strategist at FNB Home Loans, John Loos.
“We believe that the time has come for the Western Cape’s housing market to cool off, and indeed the gradually slowing average house price growth rate for that province appears to pointing to such a cooling off emerging,” he said.
“This region’s market is the most expensive in South Africa, with an average transaction price estimated at R1.437 million in the 2nd quarter of 2017, the next highest average price being that of Gauteng at an estimated R1.050 million.”
Using this benchmark, BusinessTech looked at the types of homes you can buy in South Africa’s five largest cities – Durban, Cape Town, Johannesburg, Pretoria and Port Elizabeth.
Durban
5 bedroom house in Chatsworth – R950,000
2 bedroom apartment in Morningside – R980,000
2 bedroom apartment, in Sheffield Beach, Ballito – R980,000
1 bedroom apartment in Umhlanga Ridge – R930,000
Cape Town
1 bedroom apartment in Muizenberg – R820,000
1 bedroom flat in Tyger Valley – R850,000
2 bedroom apartment in Durbanville – R970,000
Johannesburg
1 bedroom flat in Morningside – R975,000
3 bedroom house for sale in Kensington – R995,000
3 bedroom house in Meyersdal – R850,000
Pretoria
3 bedroom house in Montana – R998,000
2 bedroom house in Equestria – R995,000
2 bedroom townhouse in Eldoraigne – R930,000
Port Elizabeth
2 bedroom apartment in Walmer – R990,000
3 bedroom house in Bluewater Bay – R1,080,000
1 bedroom apartment in Summerstrand – R1,000,000
All data and images sourced from Property24.
Read: 2 Cape Town properties just smashed the record for rental prices in South Africa
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