What house you can afford to buy with your monthly salary in SA

·5 Jun 2016

Research by property analytics group Lightstone shows the value of the house you can afford on your monthly salary in neighbourhoods across South Africa.

The group’s research looked at properties across the country and calculated what a home buyer would have to earn per month to pay off a 20 year mortgage, assuming they use 30% of their monthly gross to fund it.

According to Lightstone, the median property value was used “as it eliminates extreme values which can influence the price within a suburb, and it gives a good representation of the typical house value in the suburb as a whole”.

Looking at south Africa as a whole, the median value for a property in the Western Cape is R680,000, the highest out of all of the provinces, and one which would require a monthly salary of R22,600.

The Eastern Cape is the province with the lowest median value of a property (at R380,000) requiring a salary of R12,600.

To afford a property in Gauteng where the median value is R620,000, you’d typically need a salary of R20,600, Lightstone said.

“Comparing median values of properties on a provincial level and the salaries required, there isn’t a massive difference in numbers. What about when you take it one step further and analyse suburbs and the salary needed to purchase within them?”

“This is where the numbers change – substantially,” the group said.

To afford a luxury beach property with a median value range of R11,700,000 in Llandudno, you’d need a monthly salary of R389,400.

A property of R7,200,000 within the coastal estate of Zimbali would require a salary of at least R239,600, and a property of around R8,350,000 in De Zalze Golf Estate would require a salary of R277,900.

The following table shows what monthly salary you would have to earn to afford houses in South Africa – and which suburbs typically align with those values.

Gross monthly salary	Home value*	Typical suburbs in SA
R327 800	R9 850 000	Dunkeld (GP), Constantia (EC)
R213 000	R6 400 000	Fresnaye (WC), Linksfield North (GP), Mooikloof (GP)
R106 500	R3 200 000	Parkhurst (GP), Tokai (WC), Umhlanga Rocks (KZN)
R89 900	R2 700 000	Woodmead (GP), Bryanston (GP), Meadowridge (WC)
R66 600	R2 000 000	Godons Bay (WC), Hazelwood (GP), Umdloti Beach (KZN)
R58 200	R1 750 000	Blairgowrie (GP), Pinehurst (WC), Glen Hills (KZN)
R49 900	R1 500 000	Lonehill (GP), Durbanville (WC), Waterfall (KZN)
R41 600	R1 250 000	Parkhill (GP), Tableview (WC), Kensington (GP)
R33 300	R1 000 000	Doornpoort (GP), Escombe (KZN), Swellendam (WC)
R23 300	R700 000	Krugersdorp West (GP), Lancaster Hill (KZN), Grabouw (WC)
R16 600	R500 000	Parow Central (WC), Regier Park (GP), Shastri (KZN)
R10 000	R300 000	Yeoville (GP), Umlazi (KZN), Eastridge (WC)
R6 300	R190 000	Hillbrow (GP), Wasbank (KZN), Khayelitsha (WC)