What a R2 million home looks like in Joburg vs Cape Town vs Durban and more

South Africa’s property market is under strain as prospective buyers are getting ready to pay more each on their bond.

On 25 May, the South African Reserve Bank (SARB) is expected to increase the interest rate yet again, marking the tenth-rate hike since November 2021.

The majority of analysts and researchers are predicting a 25 basis point hike; however, there are a handful of outliers that suspect the Reserve Bank would repeat what it did in March and surprise markets with another 50 basis point hike.

In September 2021, the repo rate was 7%, this has now increased to 11.25%.

According to BusinessTech calculations, a person who has a bond for an R2 million house is paying R5,479 more each month since the start of the rate cycle.

Rising bond repayments are adding strain to already cash-strapped South Africans who are faced with constant load shedding as well as rising food inflation.

Dire economic circumstances have also decreased banks’ willingness to grant home loans, said Jackie Smith, the head of Buyers Trust.

According to Smith, this has led to people putting down larger deposits to illustrate trustworthiness to banks in an attempt to have their applications approved.

Over the course of the first quarter this year, deposits have grown by 11.9% compared to last year.

BusinessTech looked at what homes are on offer for those with R2 million to spend on a house:

Johannesburg

3 Bedroom House for Sale in Orange Grove – R1,995,000

2 Bedroom House for Sale in Melville – R1,950,000

Pretoria

4 Bedroom House for Sale in Rietfontein – R1,970,000

3 Bedroom House for Sale in Roodepark Eco Estate – R2,050,000

Cape Town

3 Bedroom Townhouse for Sale in Diep River – R1,950,000

2 Bedroom House for Sale in Observatory – R1,950,000

Stellenbosch

2 Bedroom House for Sale in Aan De Wijnlanden – R1,990,000

3 Bedroom House for Sale in Tweespruit Estate – R1,938,512

Durban

3 Bedroom House for Sale in Glenwood – R2,095,000

4 Bedroom House for Sale in Bluff – R1,995,000

Gqeberha

3 Bedroom House for Sale in Millard Grange – R1,950,000

3 Bedroom House for Sale in Walmer – R1,980,000

Bloemfontein

4 Bedroom House for Sale in Gardeniapark – R1,980,000

3 Bedroom Townhouse for Sale in Shellyvale – R1,900,000

East London

3 Bedroom House for Sale in Kidds Beach – R1,950,000

4 Bedroom House for Sale in Nahoon Valley Park – R1,925,000

Read: 3 surprising provinces offering great returns on property in South Africa right now