Sandton Area Report

Property for Investment & Rental Purposes

Sandton’s rental market continues to show its resilience, mirroring national trends of strong growth and surging demand. Across South Africa, rental enquiries are outpacing available stock, and while the prime lending rate remains relatively low by historical standards, it creates a window of opportunity for investors expanding their buy‑to‑let portfolios.

The PayProp Rental Index (Q1 2025) highlights a 5.6% year‑on‑year rental increase – a clear sign that the market is regaining momentum, with the report calling this performance “the best South Africa’s rental market has seen in years.” Likewise, the TPN Credit Bureau (Q3 2024) notes that vacancies have dropped to 5.07% nationally – the lowest level in nearly a decade.

• Gauteng’s vacancy rate fell to around 5.81%, reflecting high occupancy levels in areas like Sandton.

Yields are another strong indicator of the market’s health. The Global Property Guide places South Africa’s average gross rental yield at 10.36% (Q2 2025), with Gauteng outperforming at 11% to 16%. Average monthly rents in the province now hover around R9,200, the third highest in the country.

Apartments and sectional title units are a standout choice for investors – their lock‑up‑and‑go convenience, reduced upkeep, and broad appeal make them an attractive balance between cost‑efficiency and income potential.

Sandton’s executive rental market offers a compelling proposition: high yields, minimal vacancy risk, and a steady pool of quality tenants. For those considering expanding their portfolios, competitively priced, well‑located sectional title units continue to be a smart long‑term investment.

Buyer Demographics & Market Profile

Lightstone data (July 2024–June 2025) and ooba Q2 2025 show that 78% of buyers in Sandton are aged 18–49, with the 36–49 age group accounting for 33% of buyers and 62% of sellers – typically families, first-time buyers, and young middle-aged investors.

Sandton’s population skews affluent: over 60% fall into the wealthy or ultra-wealthy bracket, earning between R91 500 and R188 000+ per month, reinforcing why it's among Gauteng’s most affluent suburbs.

Sandton covers 143.5 km², the heart of South Africa’s financial hub. It includes suburbs like Morningside, Illovo, Rosebank, Bryanston, Fourways, and Sunninghill, and is known for prestigious retail (Sandton City, Fourways Mall, Monte Casino), high-end dining, art galleries, corporate offices, and Gautrain connectivity.

Sandton Property Landscape

Sandton offers a mix of luxury clusters, historic freeholds, and high-rise executive apartments in some of the city’s most prestigious buildings – ideal for mid-to-high-income professionals seeking upscale lifestyle options.

Sectional title properties dominate the market:

• According to Lightstone data in the last 12 months, 58% of all transfers were sectional title units.

• The R800 001–R1 500 000 price bracket recorded the highest transaction volume (1 606 sales), outperforming both lower and higher segments.

• Lightstone data reflects an average selling price of R1 484 930, ensuring sectional title property remain an accessible option for first-time buyers and market entrants, contributing to their strong sales performance.

• 71% of active listings on Property24 are sectional title; 83% of apartments listed on Property24 are under R2 million.

• The remaining 17% (929) of active sectional title listings on Property24 range from R2 million to an R85 million penthouse in Sandown, with 41 listings priced over R15 million – illustrating the strength of the high-end apartment segment.

Based on Deeds Office data over the last 10 years, the average selling price for sectional title properties is R1 224 117 – firmly establishing the “sweet spot” for Sandton sales below R1.5 million. In light of the sheer number of listings in this price range on leading property portals, sellers need to ensure their properties are priced competitively to stand out.

Deeds office data reflects the average sale price for 2025 year-to-date is R1 222 500, already trending above 2024 figures, showing steady growth in this segment.

Despite their lower average selling price compared to freehold properties, sectional title transactions accounted for one-third of the total value of Sandton property sales in the past year, highlighting their role in sustaining the market.

What this means for sellers: The strong demand and volume in the under-R1.5 million sectional title segment suggests competitively priced homes in this bracket will generate more traction.

Pricing vs Asking Trends

• Average asking price on Property24: R2 249 000
• Average actual selling price: R1 900 000

This R349 000 gap highlights the need for sellers to adjust their expectations downward to achieve a timeous sale in the current market. It confirms that the residential sales landscape remains a buyer’s market and is likely to stay that way in the near future.

An oversupply of sales stock, combined with desperate sellers accepting lower offers and a smaller pool of qualified buyers, has given aspirant homeowners strong negotiating power. As a result, properties must be competitively priced to stand a realistic chance of selling.

With further rate cuts on the horizon, and banks competing aggressively for borrowers by offering prime-minus interest rates, zero-deposit bonds, and flexible repayment plans, approval rates remain strong – 85% in Johannesburg and 85.7% in the Western Cape.

While average deposit requirements are declining, buyers are still putting down about 15.4% (5.4pp above the recommended 10%). First-time buyers reflect lower averages of 9.6–9.9%, enabling more borrowers to qualify for zero-deposit options. This competitive landscape has driven first-time buyer applications to around 46–47% of total home loan applications, fueled by rate cuts and improved affordability.

Sellers should price competitively to bridge the gap between aspirational asking prices and what buyers are willing to pay.

Freehold Property

Sales in security estates outperformed freestanding homes in the mid-to-high brackets:

• Estates (R1 500 001 – R3 million): 554 transactions
• Freestanding homes (R1 500 001 – R3 million): 365 transactions
• Estates (over R3 million): 635 transactions
• Freestanding homes (over R3 million): 638 transactions

This data confirms that security and lifestyle estates remain highly desirable, with buyers willing to pay a premium for exclusive amenities and advanced security features.

Interestingly, the average selling price for freehold homes in Sandton sits higher than that of estate properties:

• Freestanding homes: R4 693 578
• Estates: R3 931 429

Despite this difference, the total number and total value of sales transactions between estates and freestanding properties have remained remarkably similar over the past year, showing balanced demand across both categories. Well-priced homes in secure estates continue to draw strong buyer interest, particularly in the R3 million+ range.

Price Growth and Number of Property Sales

As of April 2025, South Africa’s national house price growth is tracking at 3.7%, reflecting a steady recovery despite persistent global economic challenges. Gauteng reflects more moderate growth of 2.17%.

Lightstone data shows that sectional title properties recorded the largest number of sales registrations in Sandton over the past year. This segment also saw slightly stronger price growth than freehold properties, increasing 1.66% year-to-date compared to 2024 figures.

Importantly, the median price for sectional title properties now stands at R1 194 500 -already surpassing the full-year 2024 figures. Property24 data further supports this trend, showing that the average sale price (R1 222 500) for the year to date is above the 10-year average and already trending higher than 2024.

On the freehold side, average prices have grown 20% since 2020, rising from R2 700 000 to R3 250 000, and 4.8% since 2024. Year-on-year, Lightatone data records a 1.53% increase for freehold, with the median price climbing 18% since dipping to R2 743 500 in 2020.

Interestingly, the historical price gap between freehold and sectional title properties has narrowed considerably, signalling a more balanced performance across different market segments.

Vacant Land & Sales Volumes

Vacant land sales have fallen by a staggering 33% year-on-year, after surging 47% between 2021 and 2023. This decline is unsurprising given the scarcity of undeveloped land in Sandton’s city hubs and the high number of new developments already underway in the area. Vacant land remains scarce, but pricing must reflect market realities as development opportunities decline.

According to Lightstone, a total of 2896 sectional title and freehold property sales have registered in the Deeds Office this year - 60% lower than in 2022, when registrations hit a 6-year peak. While the 2025 figures reflect only half the year, sales volumes have declined steadily since 2022, and experts do not expect them to exceed 2024 levels.

The current economic climate, aggravated by rolling blackouts, rising interest rates, higher living costs, and geopolitical tensions, has dampened demand and weakened affordability.

Yet, despite these short-term challenges, the value of property in Sandton continues to grow steadily over the long term, demonstrating the suburb’s resilience as a premier property market.

In Closing

As we head into the spring and summer selling seasons, activity in Sandton’s property market is expected to strengthen. While affordability challenges have affected bond applications in recent years, further rate cuts and aggressive competition among banks are improving access to finance.

Sandton continues to hold its position as one of South Africa’s most desirable markets. Its mix of world‑class amenities, a dynamic corporate hub, and excellent transport links attracts a diverse tenant and buyer base, from young professionals to expatriate families. Luxury sectional title apartments, especially in Sandton and neighbouring Rosebank, remain hot property, combining security, convenience, and lifestyle appeal with strong, consistent tenant demand and reliable returns.