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Property Newsletter | March 2024

SA’s residential stock market remains near R7t in value

Highest value found in Estate living

The volume of residential property transfers in South Africa dropped in 2023 to around the levels experienced during the Covid-induced slump in 2020 (276 793 : 266 639) – and the first two months of 2024 show a continuing downward trajectory.

The value of residential property transfers, however, fared better to finish the year at R241 billion, short of the R345 billion in 2022 but ahead of R226 billion in 2020.

Value and volume of transfers over time
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Transfer volumes and value (see two graphs below) in the first two months of 2024 were marginally behind the comparable period in 2023, which were both short of 2022 numbers. March was a better month for transfer volumes and value in both 2022 and 2023, so there will be keen interest to see whether 2024 transfers follow the pattern.

Volume of transfers per month
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Total purchase value per month
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Highest value found in Estate living

South Africa’s residential property market’s stock value (see table below) currently stands at just more than R6.8 trillion (February 2024).

Estates account for 6.6% of the stock but 18.1% of the value, and Sectional Title accounts for 12.9% of stock and 15.7% of value. While Freehold is by far the largest residential property sector at 80.5% of stock, it accounts for just 66.3% of value.

Total stock as at end of February 2024
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The average Lightstone value of a property in an Estate was just under R2.7 million in February 2024, as opposed to a Sectional Title unit at R1.1 million and a Freehold unit at R807 000.

Pressure on lower value property purchases

Purchases of properties valued at less than R500k accounted for 31% of all purchases in 2023, significantly down from 58% in 2010 (see graph below).

Indeed, the trend for sales in this purchase band has been downward since 2010, while sales in the R500k-R1m band have been steady at around 25-26%.

Purchases in the R1m-R3m range have climbed significantly, from 15% in 2010 to 35% in 2023, while sales in the top two bands, R3m-R5m and R5m+, have increased too.

Purchase Band 2010 - 2024
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Gauteng’s Bryanston heads South Africa’s Top 5 suburbs in sales and total purchase price

Gauteng’s Bryanston was the top selling suburb in both volume and total purchase price in 2022 and 2023, with Sea Point in the Western Cape second in 2023, up from third in 2022.

Midstream Estate in Gauteng dropped from second in 2022 to third in 2023, while Val de Vie (4th) and Fresnaye (5th) in the Western Cape in 2022 dropped out of the top five in 2023. They were replaced by Sibaya Coastal Precinct in KwaZulu-Natal in 4th spot and Sunningdale (5th) in the Western Cape.

Top suburb transfers with purchase price greater than R1 million
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