Our 1st quarter 2017 Gauteng Sub-Regional House Price Indices show mediocrity in terms of house price performance to be widespread. This is a very different situation to our City of Cape Town Sub-Regional Indices which show a very strong market on the other side of the country. The advantage of this mediocrity, however, is that our estate agents surveys continue to show very strong levels of 1st time buying in Gauteng compared to the Western Cape. For Gauteng’s economy, home affordability for 1st time buyers is important, as it is these young labour market and housing market entrants that provide the skills base for region’s economy.
Whereas the City of Cape Town’s high flying residential market has seen the high priced end far outperform lesser priced areas, Gauteng is almost something of the opposite. Most residential regions in Gauteng have been mediocre in recent years, with performance differentials not huge. But zooming in on the City of Joburg, the city estimated to have by far the highest percentage of 1st time buyers, a group searching for affordability, it is perhaps not surprising to see some out performance in terms of house price growth over the past 5 years in the more affordable region of Soweto “and surroundings”.
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