Johannesburg Property Prices: What Buyers, Sellers and Landlords Should Know
The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 28 | The Property Perspective with Etchells & Young
National headlines suggest that property prices are improving, but what does that mean for homeowners in Johannesburg?
In Episode 28 of The Property Perspective on 919 FM, Harry joins Al by phone from Sedgefield to discuss Johannesburg house price growth, Gauteng's performance compared with the rest of South Africa, home loan approvals and the local rental market.
He also shares practical advice for buyers, sellers and landlords making decisions in today's property market.
In This Episode
Harry looks beyond national house price headlines to explain why local market conditions and individual property decisions matter.
Harry discusses:
How Johannesburg house price growth compares with national trends
Why prices differ across suburbs, complexes and individual homes
Freehold versus sectional title price performance
Bond approval rates and the value of pre-qualification
Johannesburg property value compared with coastal markets
What to consider when choosing between buying and renting
Rental demand, vacancies and annual rental increases
Practical advice for sellers, buyers and landlords
Listen to Episode 28
The Property Perspective airs weekly on 919 FM.
Johannesburg Property Prices vs the National Average
Harry discusses the headline figure of 8.2% national house price growth, but cautions Johannesburg homeowners against applying it directly to their own properties.
The figures quoted in the episode put Gauteng growth at 5.5%, Johannesburg at 4.8%, Tshwane at 5.3% and Ekurhuleni at 7.3%. Harry notes that coastal markets, including the Garden Route, have performed more strongly.
These are the market figures discussed in the episode, rather than a current valuation of an individual home.
Why Your Suburb and Complex Matter More Than National Headlines
Harry explains that local factors are often more useful than national property statistics when deciding what a home may be worth.
For Johannesburg owners, that means looking at the suburb, the specific sectional title complex or estate and the condition and features of the individual property. He also raises the impact of municipal rates, increasing costs and service delivery on market sentiment.
Sellers should therefore assess comparable properties in their immediate area instead of expecting national growth rates to translate directly into their asking price.
Freehold vs Sectional Title: Which Has Performed Better?
Although smaller, more affordable sectional title homes may appeal to buyers looking for convenience and security, Harry says freehold homes performed better in the national figures he refers to.
He quotes year-on-year growth of 9.3% for freehold property and 6.3% for sectional title property in the figures available as of May. The difference shows why owners should compare similar types of property rather than rely on a single national average.
Are Banks Approving Home Loans?
Harry reports that the bond originator figures discussed in the episode show an approval rate of almost 85%, rising to around 91% among pre-qualified applicants.
He also quotes a figure of 48.4% for applicants declined by one bank who subsequently received approval from another through a bond originator.
His advice is to understand your borrowing position before searching for a home. Pre-qualification can make it easier to focus on properties you can realistically afford.
Is Johannesburg Still Good Value Compared with the Western Cape?
Joining the programme from Sedgefield, Harry describes how limited coastal property stock and higher entry prices can make relocation less affordable than Johannesburg homeowners expect.
He shares an anecdote from a local property professional about Sedgefield entry-level homes reaching around R3.5 million. He advises anyone considering a move to the coast to research prices and budget carefully rather than assume the proceeds of a Johannesburg sale will buy an equivalent home.
Johannesburg, in contrast, can still offer buyers comparatively good value for their money.
Buying vs Renting: What Should You Consider?
Harry argues that buying can offer longer-term financial advantages, especially when compared with annual rental increases. A homeowner with a bond is affected by changes in interest rates but is not exposed to the same annual rent escalation as a tenant.
However, ownership also comes with maintenance, repairs, municipal charges and other expenses. Choosing a suitable property and understanding the full monthly cost remains essential.
The right decision depends on affordability, expected time in the home and the costs of ownership versus renting.
What Is Happening in the Johannesburg Rental Market?
According to Harry, the rental market has strengthened after several difficult years. He describes lower vacancies and arrears in the rental portfolio and growing demand for well-priced properties.
He says many rental increases in their managed portfolio are now around 4% to 5%, compared with periods of 0% to 3% increases in earlier years.
For landlords, a realistic asking rental and thorough tenant screening are particularly important. Extended vacancies can quickly outweigh the potential benefit of asking for a higher rent.
Advice for Sellers, Buyers and Landlords
For sellers: price according to recent activity in your own suburb, street and complex, not the headline national growth rate.
For buyers: confirm affordability, account for interest rates, inspect the property carefully and record any agreed conditions in the offer to purchase.
For landlords: protect net rental income by pricing accurately, minimising vacancy periods, screening prospective tenants thoroughly and controlling maintenance costs.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Need Local Property Advice?
Whether you're preparing to sell, looking for your next home or reviewing the performance of your rental property, informed local advice can make a difference.
Speak to the Etchells & Young team about buying, selling, letting or managing property in Johannesburg's northern suburbs.
