Key takeaways:
- All three of Gauteng’s major metros continue to show low single-digit house price growth.
- Ekurhuleni, which has a higher concentration of middle-priced properties, has outperformed the other Gauteng metros over the last few quarters
- Price growth in the higher-priced sub-regions remains weak, as market conditions continue to favour buyers.
- However, pressure is now spilling over to some of the more affordable areas, such as Soweto in Johannesburg and Mabopane/Soshanguve in Tshwane.
- While Tshwane is the worst performer in terms of price growth, market activity indicators remain relatively intact, with healthy levels of first-time buyer participation and the average length of time it takes to sell a property.
Looking ahead, housing market trends will remain heavily dependent on developments in the broader economy. Although lower borrowing costs should provide some underlying support in the near term, the weak labour market is likely to continue to exert a drag on sentiment and activity.
