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Since the first post aperthied democratic election of 1994 in South Africa the property industry in particular has received a quicker transformation compared to other economic sectors. Section 25 of the new constitution of 1996 guaranteed property rights irrespective of colour with land ownership.
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To the surprise of the pessimist black government, macro economic fundamentals became stronger while a global acceptance of South Africa into the international business circle impacted positively on the real estate market. As overseas investors poured into South Africa to buy up value properties from land locked Johannesburg down to the coastal regions of Durban and Cape Town, the volume of demand from the rising black middle class family units on the property market has increased over the years for different types of property.
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The following forecasts have been made by the property investor club of platinum planet
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In 1999, the average south African house price was R218,000; in 2004. the average south African house price was R500,000 (rising by 22.7% per year)
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In 2010, the average south African house price is projected to hit R1million |
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South Africa house prices are currently among the lowest in the world and can only continue grouping for at least another 10 years.
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| JOHANNESBURG |
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This is the meeting point of the economy of South Africa and is also known as the City of Gold. Situated in Gauteng province, historically Johannesburg was a mine city in the late 1800s and has since expanded to be corporate headquarters of Multinational Companies. Property investment in Johannesburg offers investors capital appreciation, rental income and long-term lease.
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The northern suburbs of Johannesburg are particularly desirable by investors; Sandton and the CBD (Central Business District) environment. The perception of Sandton as the avenue of corporate giants e.g. JSE Major Banks head office, and the high network catalyzed property values as well as rental level make this a very attractive area for investors. Prices of decent flats in johannesburg generally start from R350,000 for an apartment.
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| COASTAL AREAS |
| CAPE TOWN |
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Cape Town is located in the province of western Cape, a very popular tourist destination, and seat of government of South Africa. It offers prestigious coastal properties ranking high among the world’s coastal property investment. Cape Town is on two sides; Atlantic coast and the west coast (Table mountain)
Desirable suburbs include Sea point, Clifton height, Bantry Bay, Campsbay and Bishop Court. In the west coast are Blouburgstrand, Parklands and Table Mountain. Prices start from about R585000. Properties with a direct sea view are generally more expensive than the non sea view properties.
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| DURBAN / Maritzburg |
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Located in the Kwazulu-Natal province, Durban city up to Umhlanga Rocks provides excellent value properties. Durban city has recently become the destination of international conferences and the regeneration of the city has had positive impact on property values. It is 5 and 1/2hrs drive from Johannesburg or 45mins by Air.
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Pietermaritzburg which is 85km away from Durban is also a great investor haven with 2 of the best universities in S.A situated here.
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