INVESTOR INTELLIGENCE
Affordable Housing One of the most significant trends in the South African property market is the performance of affordable housing . Properties priced below R250,000 have outpaced all other segments in terms of capital growth . These properties , often located in emerging townships and secondary cities , offer investors the potential for high returns while addressing the country ’ s housing shortage .
As I ’ ve mentioned before , high-value properties aren ’ t always the best investments as Lightstone shows that properties valued at less than R250 000 have outperformed all other value bands for most of the last 10 years with over 10 % annual capital growth per year for most of the time since 2018 ! Properties valued between R250 000 and R700 000 have come in second .
The Rental Market : A Tale of Recovery Tenant Stability and Good Standing
Being a landlord or property owner is a delight when tenants are in good standing and paying rent ! TPN defines tenants who are in good standing as those who “ have paid in full and on time , paid in the grace period or paid late ”. They also say that an account is only in good standing when fully settled with no arrears . The percentage of tenants in good standing , now at 83.34 % according to TPN Residential Rental Monitor Q2 2024 , has shown remarkable recovery since the pandemic ’ s early days . Provinces like the Western Cape have 88.43 % of tenants paying on time . This stability is a promising sign for landlords , reducing the risks of rental income disruptions . Rental Value Bands like the R7,000 to R12,000 mark have 88.58 % of tenants paying on time .
32 REI MAGAZINE JANUARY 2025