{"id":684753,"date":"2023-05-07T11:00:34","date_gmt":"2023-05-07T09:00:34","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=684753"},"modified":"2023-05-05T16:52:40","modified_gmt":"2023-05-05T14:52:40","slug":"what-you-get-for-r5-million-in-south-africa-vs-australia","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/684753\/what-you-get-for-r5-million-in-south-africa-vs-australia\/","title":{"rendered":"What you can get for R5 million in South Africa vs Australia"},"content":{"rendered":"

As prime lending rates rise in South Africa, paying off a bond has become even more difficult.<\/p>\n

In March, the Monetary Policy Committee of the South African Reserve Bank (SARB) increased the country’s interest rates by 50 basis points, bringing the repurchase rate to 7.75% and the prime lending rate to 11.25%.<\/p>\n

This marked the ninth hike in the current cycle, with a total increase of 425 basis points since November 2021 – the highest they have been in 13 years.<\/p>\n

Since the start of the domestic rate hiking cycle, a person with a 20-year bond valued at R5,000,000 is now paying R13,698 more than they used to in September 2021.<\/p>\n

As it stands, a person with a R5 million bond pays R52,463 a month at a prime lending rate of 11.25%.<\/p>\n

Australia – a hotspot for emigration and a second home to many South Africans – has also been having a rocky interest rate trajectory taking its toll on the property market.<\/p>\n

The International Monetary Fund (IMF) has ranked Australia as the second-highest country behind Canada for “housing market risk” out of 27 countries.<\/p>\n

Its market is at risk due mainly to its high level of outstanding housing debt to income.<\/p>\n

Forbes Advisor<\/a><\/strong> reported that according to recent data, the value of Australia’s housing market fell by -5% across capital cities in 2022.<\/p>\n

“Sydney dropped by -10.9%, and Melbourne was down -5.9%. While Canberra and Brisbane house values fell by -1.1% respectively last year,” Forbes reported.<\/p>\n

Despite this trend, the publication also added that experts believe that rising interest rates (similar to South Africa) were a key factor underpinning the property market’s downturn last year.<\/p>\n

“Since it began raising interest rates in May of 2022, the Reserve Bank of Australia has increased rates for ten consecutive meetings, lifting the cash rate to 3.6%\u2014before deciding to hold the rate steady at its April meeting,” reported Forbes.<\/p>\n

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BusinessTech looked at what you can get in South Africa vs Australia for R5 million:<\/p>\n

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Cape Town<\/strong><\/p>\n

3 Bedroom House for Sale in Rondebosch – R4,900,000<\/a><\/strong><\/p>\n

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2 Bedroom House for Sale in Tamboerskloof – R4,900,000<\/a><\/strong><\/p>\n

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Pretoria<\/strong><\/p>\n

3 Bedroom House for Sale in Waterkloof Ridge – R4,950,000\u00a0<\/a><\/strong>
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9 Bedroom House for Sale in Lydiana – R4,900,000<\/a><\/strong>
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Johannesburg<\/strong><\/p>\n

3 Bedroom House for Sale in Melrose –R4,950,000<\/strong><\/a><\/p>\n

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4 Bedroom House for Sale in Emmarentia –R4,900,000<\/a><\/strong><\/p>\n

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Durban\u00a0<\/strong><\/p>\n

4 Bedroom House for Sale in Essenwood – R4,995,000<\/a><\/strong><\/p>\n

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4 Bedroom House for Sale in Morningside – R4,950,000<\/a><\/strong><\/p>\n

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Australia<\/strong><\/p>\n

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Sydney<\/strong><\/p>\n

3 Bedroom for Sale in New South Wales – R4,871,062<\/a> <\/strong>(AUS400,000)<\/p>\n

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2 Bedroom sold in New South Wales – R4,871,062<\/a> <\/strong>(AUS400,000)<\/p>\n

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Melbourne<\/strong><\/p>\n

2 Bedroom apartment in Greater Melbourne Region – between R4,871,062 – R5,114,615<\/a><\/strong> (AUS400,000 – 420,000)<\/p>\n

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2 Bedroom apartment in Melbourne Region – between R4,810,174 – R5,053,727<\/a><\/strong> (AUS395,000 – 415,000)<\/p>\n

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Brisbane<\/strong><\/p>\n

2 Bedroom home for sale in Greater Brisbane Region – R5,175,530 (AUS425,000)<\/p>\n

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3 Bedroom home for sale in Greater Brisbane Region – R5,003,362<\/a> <\/strong>(AUS410,000)<\/p>\n

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Adelaide<\/strong><\/p>\n

1 Bedroom apartment for sale in Adelaide – R5,064,379<\/a> <\/strong>(AUS415,000)<\/p>\n

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3 Bedroom apartment for sale in Adelaide – R5,186,412<\/a> <\/strong>(AUS425,000)<\/p>\n

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Read: <\/strong>New property scam on the rise in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Emigration hotspot, Australia has also faced its own interest rate hikes.<\/p>\n","protected":false},"author":10,"featured_media":684879,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[26],"class_list":["post-684753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/684753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=684753"}],"version-history":[{"count":11,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/684753\/revisions"}],"predecessor-version":[{"id":685729,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/684753\/revisions\/685729"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/684879"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=684753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=684753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=684753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}