Soweto is one of the most active real estate markets in the country. It is a thriving community with 37 locations and approximately 186,000 homes, which have more than doubling since 1994, according to statistics provided by Lightstone.
Property values in the area have increased significantly faster than the rest of Johannesburg, nearly tripling over the past 10 years, making property an excellent investment.
Khosi Sibiya and Phindi Mphahlele, Seeff Soweto licensees, say there is a huge demand for property in Mzansi’s biggest township.
Some are buying to occupy, while others in the market are exploring the housing rental market.
In the past year, Soweto has seen more than 2,000 property sales totalling more than R1.1 billion, says Lightstone, with more than 40% of purchasers made by people under the age of 35, with the majority being first-time buyers.
Soweto is known for being a historical landmark in South Africa and a popular tourist destination, with famous landmarks including Kliptown, where the Freedom Charter was drafted, the Hector Petersen Memorial, and Vilakazi Street, which was once home to the late President Nelson Mandela and Archbishop Desmond Tutu, both Nobel Peace Prize winners.
These days Soweto is one of the most in demand neighbourhoods for property buyers, especially first time buyers according to the Seeff Property Group.
“While the majority of properties are free-standing, there is growing interest in estates and sectional title as urbanisation and densification continues,” said Sibiya.
Despite property prices rising steadily over the previous decade, the most significant advantage is the affordability on offer for buyers.
This allows people to move up the property ladder and accumulate wealth. Furthermore, the rising demand for rentals encourages investors to purchase rental property.
Soweto’s economy is now thriving, and citizens enjoy a high standard of living. People continue to buy in this area for a variety of reasons, including affordability and family ties, but it is also a contemporary community with public and private schools, retail malls, and nearly every service and facility imaginable.
“You can get great value in Soweto and can certainly find more square meterage for your money compared to many other areas,” said Mphahlele.
Given that the vast majority of sales fall below R750,000 and nearly all fall below R1.5 million, many young people are taking advantage of this chance to go on the property ladder. There have only been 11 deals for more than R3 million in Soweto in the past year.
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