Property Markets: Invest in these Johannesburg and Tshwane areas

While house price growth in Johannesburg and Tshwane cannot compare with that of the City of Cape Town, BusinessTech recently reported on the areas that will give you the best bang for your buck in the long term using statistics released by FNB.
It is not all doom and gloom for these major metros according to John Loos, household and property sector strategist at FNB Home Loans. For example, he says that it is estimated that the City of Joburg has the highest percentage of first time buyers - traditionally a group that is searching for affordability - and that it is not surprising to see some out-performance in terms of house price growth over the past five years in the more affordable region of Soweto and surroundings. 
Adding that Gauteng is not so much a lifestyle region but a more functional, working region and that the young labour market searching for affordability has first time buyers plays a large role. 
According to the released FNB data collected from a survey of estate agents showed that first time buyers in Joburg and Tshwane’s amounts to 27% and 21% of total home buyers respectively.
The fact that such a large portion of home buyers are first time buyers looking for affordable real estate is one of the reasons why house price growth in these areas cannot compare to that of the City of Cape Town - where most of the movement took place in the affluent/highest priced regions. 
In Joburg, the high priced Sandton region is very much in the middle of the pack, having inflated only 22.66% over the five years from early-2012 to early-2017, FNB said.
While the lower priced Diepkloof-Soweto-Meadowlands-Pimville region has seen the fastest estimated cumulative house price growth at 37.35%.
This can largely be attributed to infrastructure and retail upgrades that has made the area more attractive to first time buyers looking for affordability, according to FNB.

Similarly in Tshwane, house price growth has been slow over the past five years, especially when compared to the country’s top performing areas in Cape Town.

| images via businesstech

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