Areas and Places News Residential

Soweto property boom: a first-time buyers’ bonanza

Soweto’s property values have grown notably faster compared to the rest of Johannesburg, almost doubling over the past ten years, according to Seeff Soweto.

One of the most dynamic property markets in the country, Soweto is a bustling neighbourhood with some 37 suburbs which are home to over 186 000 properties which have doubled compared to 1994, according to Lightstone.

With Soweto one of the most in demand neighbourhoods for property buyers, its properties are predominantly freestanding with a growing interest in estates and sectional title as urbanisation and densification continues, says Khosi Sibiya and Phindi Mphalele, licensees for Seeff Soweto.

Well over 2 000 property transactions worth over R1.1 billion have been recorded for Soweto over the past year. Generally, a significant 40%-plus of buyers tend to be under 35-years of age with the majority being first-time home buyers.

You can get great value in Soweto and certainly find more square meterage for your money compared to many other areas,” says Khosi and Phindi. “Many young people are taking the opportunity to get onto the property ladder given that a significant majority of transactions fall below R750 000 and almost all fall below R1.5 million. Only ten transactions have been registered above R3 million.”

The more exclusive areas include Diepkloof with an average price of R2 million, Dobsonville at R1.5 million and Pimville at R1 million. The affordability is well illustrated considering that buyers can purchase a four-bedroomed home with a garage and three flatlets in Dobsonville for R1.4 million.

A top end property in Diepkloof with three bedrooms and two garages is priced at R1.649 million. Property taxes tend to be lower compared to other Johannesburg areas. If buyers purchase below R1.1 million there is the added benefit of no transfer duty. First-time buyers can also qualify for financial assistance through the FLISP scheme.