Here’s what R45 million buys you in Cape Town vs Pretoria vs Joburg vs Durban

 ·2 Sep 2022

Property professionals real estate group Just Property discuss how to view property as an asset class in the current investment climate, and the outlook for the sector.

The repo rate is set by the Reserve Bank’s Monetary Policy Committee and is the rate at which it lends money to the country’s commercial banks. South Africa’s repo rate is currently 5.5% and “aggressive hikes can be expected during the rest of the year” according to PayProp’s latest Rental Index Report.

“The decision to hike the repo rate by 0.75% recently, while uncomfortable, will help guide inflation back towards the midpoint – between 3% and 6% – of the target band so that we can expect to see lower interest rates in the future,” said Carl Coetzee, CEO of BetterBond.

Is property still a good investment right now?

“Property investment is still the most reliable way to generate income over the long term,” said Yolanda Cornelius of Just Property Zululand and Dolphin Coast. “If you are an investor, it is best to invest in a property that will produce rental income year-round. Just make sure you understand all the costs associated with legal fees and are prepared for unexpected costs.”

Of course, if you buy the wrong type of property at the wrong time or in the wrong area, it would be a bad investment, but with the right advice, even inexperienced buyers can get it right, noted Shaun Dubois, Just Property Choice: “The wealth that property investing can generate over time is phenomenal.”

To fix or not to fix your interest rate

Given the broad market opinion that interest rates will keep climbing and that we’re entering a prolonged period of inflation, could you use a long-term bond, fixed at the current rates as a hedge against inflation? While that is being suggested in some economies, like the US, it’s not necessarily a good idea for South Africans. Those who apply for a fixed-rate bond should be aware of the constraints.

“The value of your property depends on market growth, so there isn’t a simple answer when it comes to evaluating the benefits of a fixed interest rate versus a variable interest rate that fluctuates in line with the repo rate,” said Coetzee. “Each buyer’s financial situation and circumstances are unique, and it depends on the state of the market and house price inflation.”

Only once the bond is registered can one apply for a fixed interest rate within a strict time limit attached before the offer lapses. The fixed-rate offer on a bond is usually considerably higher than the variable rate as it poses more of a risk to the bank.

“It’s also worth remembering that fixed interest rates are set for up to a maximum of five years. That means that on a longer-term loan you would need to renegotiate the terms after five years, if not sooner, and you could very well find that the new terms are less favourable than they were before,” he warned.

How long should one hold on to property?

Knowing when to sell a property can be a difficult decision for any investor. “There’s an old saying: Don’t wait to buy real estate; buy real estate and wait,” said Dubois. “Property should seldom be sold. If you purchase wisely, there should be little reason ever to sell.”

“Try to hold onto a property for at least four to five years. This time frame is sufficient to show healthy appreciation – the level of appreciation will help you evaluate the property’s future potential performance,” said Cornelius.

One investment that has proven to outperform inflation in the South African property market is cleverly selected buy-to-let property, said Cornelius. “Firstly, while experiencing short-term fluctuations, property price growth continues to keep pace with inflation over the long-term. In fact, it is widely recognised that inflation boosts physical asset prices like gold, silver, oil and property.

“With recent trends, I would be leaning more towards affordable sectional title units than commercial,” said Dubois. “Flipping” can be lucrative if you can purchase a residential house that you can convert to commercial zoning; otherwise, he sees little opportunity, “though some individuals have succeeded”, he concedes.

What a growth property looks like

BusinessTech looked at properties featured by Pam Golding in the country’s major metros that have attracted strong growth, likely due to their location, and luxury, now on sale for around R45 million.


Mount Edgecombe is a gated community in KwaZulu-Natal, South Africa, situated just north of Durban.

This home is built over 3 plots of land in a quiet cul-de-sac with one of the most sensational views overlooking a dam and the fairways of the golf course within the estate. It offers 5 en-suite spacious and luxurious bedrooms, one of which is a self-contained flatlet connected to the home, as well as a study all leading out onto the wrap around veranda and gardens.

Another feature of the home, is the wine cellar and whiskey room, inspired by classic Italian style design. Additional features include an inverter & 15 solar panels, two additional day rooms and storeroom Vacuflow Garaging for 5 cars + golf cart + additional guest parking.


This family residence (2 150m²), set in a park-like estate of 10 538m², offers a lush, classically inspired, landscaped garden, wine cellar, and indoor pool. The property also offers a summerhouse, an outdoor pool, jacuzzi, pizza and braai area.

The state-of-the-art security system includes 16 CCTV cameras spread throughout the entrance, home and garden – all of which can be viewed remotely on mobile devices.

Exterior features include a backup generator, braai, courtyard, jacuzzi, pizza oven, undercover patio, water feature and wooden deck.

  • 1 x Cottage (1 Bedroom , 1 Bathroom)
  • 1 x Flatlet (1 Bedroom , 1 Bathroom)
  • 1 x Staff Accommodation (2 Bedrooms , 2 Bathrooms)

Steyn City

This home boasts five spacious en-suite bedrooms with the main bedroom being exceptionally large with a bathroom which have his and hers showers and toilets, dressing room anyone would dream of owning.


  • Underfloor heating and breeze air conditioning.
  • Show kitchen with Miele appliances and a back-of-house kitchen/scullery.
  • Open plan living room with doors to the pool and jacuzzi.
  • There is a separate cigar lounge with doors to a four (4) car glass garage which can be turned into a space for entertaining.
  • Outside study with bathroom and staff room. His and hers guest cloakrooms.



This property is tucked away in the heart of the prestigious suburb of Waterkloof, Pretoria. Set over a sprawling 4 512 m2, this home has beautiful gardens, a games room, gym and office. Also included are the following:

  • 2 x Guest Suite (1 Bedroom , 1 Bathroom)
  • 1 x Staff Accommodation (1 Bedroom , 1 Bathroom)

Cape Town

Beautifully positioned in sought-after Bishopscourt, this home is built to enjoy magnificent mountain views.

It boasts an easy, contemporary lifestyle for the modern family and comprises numerous living areas featuring a separate elegant formal lounge and dining room, warmed by woodburning fireplaces. The family/TV room, with bar area, flows seamlessly from the kitchen and is separated by a double-sided wood fireplace.

Sliding glass stack-doors create perfect indoor/outdoor flow to the undercover patio with braai area, ideal for Alfresco entertaining, which overlooks a sparkling rim-flow, chlorine-free pool and the lush, well-designed garden with tennis court and a koi pond.

Additional buildings

  • 1 x Cottage (2 Bedrooms , 2 Bathrooms)
  • 1 x Guarding
  • 1 x Shed
  • 1 x Staff Accommodation (2 Bedrooms , 1 Bathroom)

Atlantic seaboard

Tucked away at the end of sought -after Ravine Rd, this impressive property offers quality from concept to completion! Innovative architectural detailing and inventive interiors characterize this spectacular home. Designed around an expansive pool deck that facilitates outdoor living at its best.

The top floor consists of a magnificent master suite, with his and her study areas and elegant open plan bathroom, all with wrap-around views as far as the eye can see. A further 3 spacious, beautifully appointed en-suite bedrooms, two offering work/study-from-home spaces.

Read: South Africa has returned to 1950s living

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