{"id":697735,"date":"2023-07-01T17:00:00","date_gmt":"2023-07-01T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=697735"},"modified":"2023-06-30T17:14:34","modified_gmt":"2023-06-30T15:14:34","slug":"the-return-on-a-house-if-you-bought-in-2010-cape-town-vs-johannesburg-vs-durban","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/697735\/the-return-on-a-house-if-you-bought-in-2010-cape-town-vs-johannesburg-vs-durban\/","title":{"rendered":"The value of a 2010 property today – total return in Cape Town vs Johannesburg vs Durban"},"content":{"rendered":"\n

South Africans who have owned a property for over a decade have seen a notable increase in the value of their properties, with those that purchased a house in Cape Town having more than doubled their investment in roughly thirteen years.<\/p>\n\n\n\n

The latest report from Statistics South Africa (StatsSA) compared eight metropolitan municipalities across nine provinces measuring changes in residential property prices through a new set of residential property price inflation (RPPI) metrics.<\/p>\n\n\n\n

The RPPI measures the change in prices for houses, townhouses and flats that private individuals purchase.<\/p>\n\n\n\n

The data showed that since 2010, on average, property prices in the country have increased by 98%.<\/p>\n\n\n\n

However, Cape Town was the only province to outperform the national average, showing a significant increase of 147%.<\/p>\n\n\n

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Camps Bay, Cape Town.<\/em><\/figcaption><\/figure><\/div>\n\n\n

\u201cSince August 2014, price increases in Cape Town have been consistently higher than in other metros. After remaining relatively flat in 2018 and 2019, prices surged further,\u201d reported the statistics agency.<\/p>\n\n\n\n

Following Cape Town\u2019s growth are Ekhuruleni (94%), Tshwane (91%), and Buffalo City (89%). Johannesburg saw the smallest increase of 71% since 2010, while property in Kwa-Zulu Natal increased by 80%.<\/p>\n\n\n\n

To put these price inflation figures into perspective, BusinessTech calculated the appreciation of property in the major metros if you invested in a house in 2010 at four price points \u2013 R2 million, R3 million, R5 million, and R10 million.<\/p>\n\n\n\n

If you bought a house in Cape Town for R2 million in 2010, the house’s value should be around R4.94 million today. This is R1.34 million more than if you invested in KZN (R3.6 million) and just over R1.5 million more than a home in Joburg (R3.42 million).<\/p>\n\n\n\n

However, these differences are much more pronounced wh the other end of the spectrum. If you invested in a house in Cape Town for R10 million, today it would be worth around a whopping R24.7 million.<\/p>\n\n\n\n

This is R6.7 million more than a house of the same value bought in KZN (R18 million) and a staggering R7.6 million more than one in Joburg (R17.1 million).<\/p>\n\n\n\n

The table below shows the price increases of homes across several metros bought at different values in 2010.<\/p>\n\n\n\n

Property value (2010)<\/th>Cape Town (+147%)<\/th>Joburg (+71%)<\/th>KZN (+80%)<\/th>East London (+89%)<\/th>PE (+77%)<\/th><\/tr><\/thead>
R2,000,000<\/td>R4,940,000<\/td>R3,420,000<\/td>R3,600,000<\/td>R3,780,000<\/td>R3,540,000<\/td><\/tr>
R3,000,000<\/td>R7,410,000<\/td>R5,130,000<\/td>R5,400,000<\/td>R5,670,000<\/td>R5,310,000<\/td><\/tr>
R5,000,000<\/td>R12,350,000<\/td>R8,550,000<\/td>R9,000,000<\/td>R9,450,000<\/td>R8,850,000<\/td><\/tr>
R10,000,000<\/td>R24,700,000<\/td>R17,100,000<\/td>R18,000,000<\/td>R18,900,000<\/td>R17,700,000<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n

Despite the exceptional growth seen in Cape Town since 2010, South Africa\u2019s property appreciation is actually behind the world average.<\/p>\n\n\n\n

According to Lightstone\u2019s property data, after adjusting for inflation, South Africa\u2019s real property value has declined by 5%. This is compared to the 18% average increase of other emerging markets.<\/p>\n\n\n\n

Additionally, Senior Economist Siphamandla Mkhwanazi expects the growth of house prices to slow to around 2% this year compared to 3.5% in 2022, and there are more risks of prices decreasing.<\/p>\n\n\n\n

\u201cThe impact of weakening consumer finances on house prices has been stronger than anticipated, especially in the higher-end market,\u201d he said.<\/p>\n\n\n\n

The FNB House Price Index showed that the annual growth of house prices decreased in May to an average of 1.9% compared to 2.1% in April. <\/p>\n\n\n\n

This is mainly due to high living costs and increased borrowing and debt-servicing costs, making houses less affordable, especially for lower-income groups. <\/p>\n\n\n\n

However, the lower end of the housing market still has strong price growth, while properties valued above R5.5 million have seen significant declines in value.<\/p>\n\n\n\n

The supply of houses for sale is increasing compared to the demand, causing properties to stay on the market longer.<\/p>\n\n\n\n

\n\n\n\n

Read: How much more you\u2019ll pay on your monthly bond if interest rates go up again next month<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

This is how much property prices have increased in South Africa’s major metros since 2010.<\/p>\n","protected":false},"author":10,"featured_media":682715,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[76,853,1809],"class_list":["post-697735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-fnb","tag-south-africa","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/697735","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=697735"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/697735\/revisions"}],"predecessor-version":[{"id":700625,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/697735\/revisions\/700625"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/682715"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=697735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=697735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=697735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}