The average house price in South Africa’s hottest suburbs including Umhlanga, Soweto, Sandton and Blouberg
Online property start-up Property Fox has published its second annual Virtual Reality Report for 2017, which takes a closer look at consumer sentiment around neighbourhoods in South Africa’s biggest cities, and what is driving trends around property in those areas.
The report tracks posts and comments from 60,000 social media accounts to determine sentiment and trends on areas in Cape Town, Johannesburg and Durban.
By looking at things like tags and mentions of specific regions – such as which places are most tagged in photos, or which restaurants and bars are most mentioned – the group was able to determine which neighbourhoods and suburbs are currently the trendiest places to be.
The group then integrates property data with these metrics, showing how property prices and property types compare from area to area.
Cape Town was found to be the most popular city, followed by Johannesburg and Durban. These were the most popular suburbs in the country:
- Camps Bay
- Hout Bay
- Umhlanga
- Sea Point
- Bloubergstrand
- Sandton
- Simonstown
- Soweto
- Sunningdale
- Constantia
Property Fox said its data showed that there has been a rise in interest in outlying areas from cities, beyond the ‘traditionally favoured’ suburbs.
Co-founder Crispin Inglis said that this could be driven by the economic downturn, which means people may be looking at property as a longer-term investment.
“Instead of buying a smaller place in a trendy suburb then moving in a few years when a bigger house is desired, people are looking to reduce transfer fees and the other costs of a sale by purchasing a larger home in a more affordable area from the get go,” he said.
“With property prices in city centres soaring – in Cape Town especially – many are moving to quieter hoods still within easy commute to the bustling epicentres.”
In areas like Soweto, the property price boom seen there could be due to urbanisation, the rise of the black middle class, and young professionals moving back to Soweto from the suburbs because they miss its upbeat edge, Property Fox said.
This is how house prices and sectional title prices have changed between 2016 and 2017 in the most popular areas in South Africa’s top three cities, according to Property Fox.
[ST = Sectional Title | FH = Freehold property]
Cape Town
| # | Area | 2016 price | 2017 price | % change |
|---|---|---|---|---|
| 1 | Camps Bay (ST) | R7.9 million | R9.7 million | +22.8% |
| 2 | Hout Bay (ST) | R1.7 million | R1.85 million | +8.8% |
| 3 | Sea Point (ST) | R2.8 million | R3.3 million | +17.5% |
| 4 | Blouberg (ST) | R1.3 million | R1.45 million | +11.5% |
Cape Town alternatives
| # | Area | 2016 price | 2017 price | % change |
|---|---|---|---|---|
| 1 | Bo-Kaap (FH) | R1.7 million | R2.38 million | +40.0% |
| 2 | Observatory (FH) | R1.95 million | R2.28 million | +16.9% |
| 3 | Woodstock (FH) | R1.95 million | R2.11 million | +8.2% |
| 4 | Mowbray (FH) | R2.33 million | R2.67 million | +14.7% |
West Coast
| # | Area | 2016 price | 2017 price | % change |
|---|---|---|---|---|
| 1 | Bloubergstrand (ST) | R3.8 million | R4.3 million | +13.2% |
| 2 | Sunningdale (ST) | R1.74 million | R1.8 million | +3.8% |
| 3 | Melkbosstrand (FH) | R3.1 million | R2.9 million | -6.5% |
| 4 | Milnerton (FH) | R1.42 million | R1.59 million | +12.0% |
Johannesburg
| # | Area | 2016 price | 2017 price | % change |
|---|---|---|---|---|
| 1 | Sandton (FH) | R2.75 million | R2.8 million | +1.8% |
| 2 | Soweto (FH) | R315 000 | R320 000 | +1.6% |
| 3 | Randburg (FH) | R1.64 million | R1.65 million | +0.5% |
| 4 | Braamfontein (ST) | R465 000 | R475 000 | +2.2% |
Johannesburg alternatives
| # | Area | 2016 price | 2017 price | % change |
|---|---|---|---|---|
| 1 | Centurion (FH) | R1.62 million | R1.65 million | +2.2% |
| 2 | Fourways (FH) | R2.35 million | R2.3 million | -2.1% |
| 3 | Maboneng/Jeppestown (FH) | R695 000 | R680 000 | -2.2% |
| 4 | Midrand (FH) | R630 000 | R680 000 | +7.9% |
Soweto
| # | Area | 2016 price | 2017 price | % change |
|---|---|---|---|---|
| 1 | Dube (FH) | R460 000 | R355 000 | -29.0% |
| 2 | Diepkloof (FH) | R780 000 | R775 000 | -0.6% |
| 3 | Meadowlands East Z1 (FH) | R270 000 | R350 000 | +29.6% |
| 4 | Moroka (FH) | R415 000 | R460 000 | +10.8% |
Durban
| # | Area | 2016 price | 2017 price | % change |
|---|---|---|---|---|
| 1 | Umhlanga (FH) | R4.9 million | R4.8 million | -2.0%% |
| 2 | Ballito (FH) | R2.8 million | R2.9 million | +3.6% |
| 3 | Pinetown (FH) | R982 000 | R1.25 milliom | +27.0% |
| 4 | Amanzimtoti (FH) | R700 000 | R700 000 | 0% |
| 4 | Port Shepstone (FH) | R770 000 | R899 000 | +16.75% |
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