As with many other parts of South Africa, the volume of property sales in the Northern Cape have declined since 2008 while the value of property sales has been on the increase with trend lines crossing each other in 2013, according to Lightstone.
In 1994, there were almost 5 000 transactions which rose to just over 5 300 in 2007 before falling steeply to around 2 400 in 2009. After recovering some lost ground, volumes fell again from 2014 and ended 2023 at just under 2 300. The value of transactions, however, continued to rise to a high of R2.2 billion in 2021, before drifting back to R1.7 billion in 2023.
The graph below shows how the Northern Cape has moved from being a province almost exclusively dominated by property transactions below R500 000 to one in 2023, where of the 2 273 transactions, properties valued at more than R3 million accounted for 49 transactions (2%), R1 million – R3 million accounted for 817 (36%), R500 000 – R1 million for 608 (27%), and under R500 000 for 799 (35%).
The bulk of properties (64%) registered at the Deeds Office in the Northern Cape mid-April 2024, were valued at less than R500 000, with 22% valued at between R500 000 and R1 million, and 14% at between R1 million – R3 million. Properties valued at above R3 million don’t move the statistically relevant dial.
The top 12 towns by volume of purchases: 1994 – 2024
Kimberly accounted for 40% of the purchases spread across the top 12 towns in the province, followed by Upington (14%) and Galeshewe (9%), a township outside Kimberley.
Development of residential properties
More than 10 000 residential properties were developed each year between 1994 to 1998, with the numbers declining to just 1 971 in 2002. Development picked up marginally until 2007, when a new low of 1 772 was reached. After another bubble of development, which reached a high of 4 281 in 2010, numbers fell away to just 428 in 2013 and have not climbed higher than 1 868 (in 2016) since then.
Of the just more than 125 000 properties developed since 1994, freehold accounted for 97%, estates 2.3% and sectional title 0.8%.
The graph below demonstrates that the majority of homes in the Northern Cape are freehold, followed by sectional title and then estates:
