The Gauteng metros present unparalleled value for property buyers and investors right now, says Samuel Seeff, chairman of the Seeff Property Group.
Despite current market sluggishness, Seeff believes this is a rare opportunity for buyers and investors to secure assets at historically low prices.
He notes that buyers should take advantage of the more favourable lending environment and interest rate cuts, which are now one percentage point lower than a year ago.
Combined with affordable pricing, these conditions present a compelling case for investment.
Seeff pointed to significant affordability across Johannesburg, with many suburbs offering homes under R1.5 million. In the mid-tier bracket, properties in the R3 million to R5 million range deliver far more space and value per square metre compared to Cape Town.
Even in established luxury enclaves, high-end homes can still be acquired for under R10 million to R15 million – an uncommon scenario in the current market landscape.
“You can find unbelievable value, even in the luxury areas where you can find mansions for under R10 million to R15 million,” he said.
While the market is picking up, it remains sluggish, largely due to poor infrastructure maintenance and management, but this will not always be the case, said Seeff.
Lightstone reports show that Johannesburg’s property transactions have declined by over 30% in some areas, with average home values stagnant at around R1.3 million.
The city has experienced negative annual property value growth of -1.3%, marking it as the weakest-performing metro, and falling well behind Cape Town’s 6% growth.
Despite this, Seeff maintains that Johannesburg’s fundamentals remain strong. The city is not only the economic heart of Gauteng, South Africa’s wealthiest province, but also the commercial engine of the country.
It hosts the Johannesburg Stock Exchange, the headquarters of major financial institutions, and more than 70% of South Africa’s corporates. Johannesburg contributes nearly 16% to the national GDP and around 40% to Gauteng’s economy.
Joburg also has the largest concentration of wealth on the continent, with nearly 15,000 dollar-millionaires based in the broader Johannesburg/Pretoria region. High urbanisation rates continue to drive demand for housing, with strong potential in the rental market.
According to Seeff, rental yields in many areas remain above average and often outperform those in the Western Cape.
Although infrastructure and service delivery challenges have hampered growth, Seeff sees these as man-made problems that can and must be resolved.
He said that the current disconnect between Johannesburg’s economic stature and its sluggish property market is unlikely to last.
