As shown in the top graph, the distribution of residential properties across market segments has not changed significantly over the last five years. It is noted that the share of total houses that are valued over R1.2 million has grown from 19.6% in 2019 to 24.1% in 2023.
This is likely due to property appreciation—these figures are in nominal terms and do not account for inflation. Thus it is expected that more properties would move into the higher market segments over time.
The middle graph takes a closer look at market segmentation by separating
residential properties in metros from those outside metros (i.e. in the local municipalities).
Despite 49% of all government-subsidised housing being located in the metros, only 18% of properties in metros are valued less than R300 000, compared to 43% outside the metros in local municipalities. The metros also have a larger portion of properties in the so-called affordable segment between R300 000 and R900 000 (23%).
The different profiles of the residential property market between metros and on-metros is to be expected.
Local municipalities contain the intermediate cities which are growing and serve as important economic nodes. However he rural areas—with more low value freehold properties—would also fall within the non-metro, local municipality areas.
As shown in the bottom graph, Gauteng and Western Cape contain larger numbers of high-end properties valued over R1.5 million. In fact, in 2023 the number of residential properties in Gauteng which are valued below R900 000 was greater than all the properties in the Western Cape combined.
To access this report, as well as many others, visit:
Request Access to Whitepapers
