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.

Median house price vs median salary

“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.

Salary map

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)

*Financed over 20 years at 30%

Here are a few examples of homes in the price brackets mentioned:

R9.9 million home in Dunkeld
Needed gross salary: R327,800 per month

Dunkeld home 3

R2.6 million home in Woodmead
Needed gross salary: R89,900 per month

Woodmead 2

R1.49 million home in Durbanville
Needed gross salary: R49,300 per month

Durbanville 2

R930,000 home in Escombe
Needed gross salary: R33,300 per month

Escombe 1

R275,000 home in Khayelitsha
Needed gross salary: R10,000 per month

Khayelitsha 1

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