RESIDENTIAL
Formal Property stock with estimated values
In addition to the 5.6 million registered properties , there are approximately 1.7 million properties Lightstone has not attached a value to ( and many of these might be classified as Affordable ).
A significant portion of this number is likely to be lowincome housing which is not actively trading . The 5.6 million registered properties ( see table below for Lightstone ’ s property bands for this segment of the market ) exclude units in informal settlements and formal structures built on community trust land , such as the Ngonyama Trust . sub-bands : Lower Affordable ( values under R250k ), Mid Affordable ( R250K-R500k ) and Upper Affordable ( R500k-R750k ),” says Lightstone Property ’ s head of digital Hayley Ivins-Downes .
To afford servicing a R250k bond one needs a gross salary of R9k , for a R500k bond it is R18k and R27k for a R750k bond . We estimate there are around 6 million households in South Africa within these income ranges , providing further evidence of the upside potential to meet demand with supply .
What is “ Affordable ” property ? And who can afford to buy ? “ Lightstone defines Affordable property as under R750 000 in value , and sub-divides the Affordable price band into three
58 JUNE 2024 Real Estate Investor Magazine