Tag Archives: Landsdowne Property Group

Semigration 2.0: South Africans on the move again

Over the past few years, semigration – the trend of South Africans relocating from one province to another for lifestyle, work, or financial reasons – has reshaped the country’s property market.

When remote work became the norm during and after COVID-19, many professionals and families left inland cities for coastal destinations like the Western Cape, KwaZulu-Natal, and the Eastern Cape. Now, however, the tide is shifting.

With more companies requiring employees to return to the office – especially in Johannesburg and Pretoria – some of those who relocated are making their way back.

Despite the uptick in reverse semigration, demand for property in the Western Cape remains exceptionally strong, according to Roger Lotz, franchisee at the Rawson Properties Helderberg Group.

“Cape Town continues to be one of South Africa’s most desirable places to live,” said Lotz. “While most people are heading back to Gauteng, we’re still seeing strong interest from buyers as well as international investors. Cape property is highly sought after, and that’s not changing anytime soon.”

A recent survey by CareerJunction found that nearly 60% of South African employers are now requiring employees to return to the office.

Since many large corporations are headquartered in Johannesburg, professionals who moved to coastal areas during the work-from-home boom are now needing to return.

“Many reverse semigrators are choosing to hold onto their Western Cape properties as rental investments rather than selling, boosting the rental market” says Lotz. “That speaks volumes about their confidence in the long-term value of Cape property,” he said.

Cape Town’s property market remains resilient

Cape Town remains a lifestyle destination – The quality of life, scenic beauty, and safety continue to attract homebuyers, said Rawson Properties. Demand continues to exceed supply, meaning well-priced properties sell quickly.

Many property owners are opting to rent out their Cape properties instead of selling, highlighting strong investor confidence, it said.

And while some are relocating back inland, others – especially retirees, entrepreneurs, and full time remote workers – are still semigrating to the Cape.

While Cape Town’s market is thriving, Johannesburg and Pretoria are seeing an uptick in demand from professionals moving back for work. Some buyers are taking advantage of Gauteng’s more affordable property market, particularly in areas close to key business hubs like Sandton, Rosebank, and Midrand. Lotz acknowledged this shift and remains confident in the resilience of Cape Town’s market.

For buyers, the continued demand for Cape properties makes it a solid long-term investment. Prices remain stable or are increasing in sought-after areas, and well-located properties are in high demand.

For sellers, the market remains active, and strong buyer interest means well-priced properties are selling quickly. For those considering whether to sell or rent out their property, keeping it as an investment is proving to be a smart option.

“Even as some people move back for work, Cape Town remains the dream destination. The property market here is still thriving, and investor confidence is as strong as ever. That’s not about to change any time soon.”

After more than a decade of sluggish growth, Johannesburg’s residential property market is showing promising signs of recovery, signalling the possible bottom of the cycle. According to Landsdowne Property Group, this renewed activity presents a golden opportunity for investors and first-time buyers alike.

With property prices at multi-year lows and rental demand holding strong, South Africa’s economic powerhouse is becoming an attractive destination for savvy buyers looking to capitalise on value-driven opportunities.

Property prices in Johannesburg have stagnated for over a decade, weighed down by concerns over infrastructure, safety, and semigration trends. However, the same factors that suppressed growth have now created a market ripe for buyers seeking long-term value.

“We believe Johannesburg has officially reached the bottom of the cycle,” said Jonathan Kohler, Founder and CEO of Landsdowne Property Group.

“This means buyers and investors can secure properties at 2007 price levels—a rare opportunity for those seeking strong rental income or long-term capital appreciation.”

While lifestyle estates remain popular due to their security appeal, freehold homes in well-located suburbs are emerging as attractive alternatives, offering exceptional value in a buyer-friendly market.

Joburg property prices roll back to 2007

After more than a decade of sluggish growth, Johannesburg’s residential property market is showing promising signs of recovery, signalling the possible bottom of the cycle.

According to Landsdowne Property Group, one of South Africa’s largest residential real estate agencies and managers – this renewed activity presents a golden opportunity for investors and first-time buyers alike.

With property prices at multi-year lows and rental demand holding strong, South Africa’s economic powerhouse is becoming an attractive destination for savvy buyers looking to capitalise on value-driven opportunities.

Property prices in Johannesburg have stagnated for over a decade, weighed down by concerns over infrastructure, safety, and semigration trends.

However, the same factors that suppressed growth have now created a market ripe for buyers seeking long-term value.

“We believe Johannesburg has officially reached the bottom of the cycle,” said Jonathan Kohler, founder and CEO of Landsdowne Property Group.

“This means buyers and investors can secure properties at 2007 price levels—a rare opportunity for those seeking strong rental income or long-term capital appreciation.”

While lifestyle estates remain popular due to their security appeal, freehold homes in well-located suburbs are emerging as attractive alternatives, offering exceptional value in a buyer-friendly market.

Despite its reputation as a challenging market, Johannesburg continues to deliver some of the highest rental yields in the country. Investors in well-placed properties can expect net rental returns of around 9%, with certain high-demand areas surpassing 10%.

“Suburbs like Braamfontein and Newtown consistently achieve yields above 10%, driven by demand from students and young professionals,” said Kohler.

Other thriving rental hotspots include Paulshof, Sunninghill, Randburg, Fourways, and Midrand, where strong tenant demand ensures stable rental income for landlords.

Fourways, a northern suburb of Johannesburg, is a clear example of value in a down cycle. One-bedroom apartments in established estates start at around R600,000, with rental yields of between 9%-11% – thanks to strong tenant demand and relatively low purchase prices.

By contrast, Blouberg in Cape Town offers a very different picture. A similar one-bedroom apartment starts at about R1.4 million, with rental yields typically lower, between 5%-7%.

Sea views or beachfront access can push entry-level prices well beyond R2 million.

“While Cape Town may promise coastal charm and long-term capital growth, Fourways shows where the smart money might go in a cooling market: solid returns at a lower cost of entry,” said Kohler.

Compared to Cape Town and other metros, Johannesburg offers significantly more affordable property options, making it one of the best places for entry-level buyers to secure a foothold in the market.

  • Midrand & Boksburg – One-bedroom apartments available for under R700, 000.
  • Johannesburg South – Spacious freestanding homes for under R2 million.
  • Bedfordview & Edenvale – Diverse options from starter apartments to luxury homes.
  • Malvern & Kensington – Renewed interest in character-rich freestanding homes.
  • West Rand (Roodepoort & Krugersdorp) – Affordable family homes in well-established communities.

“Many areas still offer incredible value, particularly where infrastructure developments are set to enhance livability,” Kohler said.

Johannesburg’s residential sector has struggled with weak capital appreciation in recent years, but early signs of recovery suggest a shift could be underway.

Kohler however cautions that certain suburbs are already seeing modest price growth, and with interest rates projected to decrease, a surge in market activity should be anticipated. Kohler believes that the window to buy at current price levels may not stay open for long.

Another key driver of Johannesburg’s market resurgence is the growing preference for secure, low maintenance living in sectional title complexes. The “lock-up-and-go” lifestyle has strengthened demand for townhouses and apartments in key urban nodes.

“Security and convenience remain top priorities, leading to steady demand in areas with strong transport links, reputable schools, and access to business hubs,” said Kohler.

With rental demand outpacing supply in many parts of the city, competitive purchase prices, and the first indications of a recovery in over a decade, Johannesburg’s property market may be entering a new cycle – one that favours bold, strategic buyers.

VAT warning to residential property buyers and tenants


An increase in VAT will put more pressure on already struggling consumers, leaving them with less disposable income, says Landsdowne Property Group, a residential real estate manager and estate agency. This could lead to reduced spending, lower savings and fewer big purchases like buying a home, it says.

South Africa will likely see a 0.5 percentage point increase in the VAT rate to 15.5% from 1 May 2025. This adjustment, as proposed by finance minister Enoch Godongwana in his Budget Speech, is part of a broader budget move, which also includes another 0.5 percentage VAT hike planned for 1 April 2026.

“Many buyers may delay their property purchases, opt for lower-priced homes or look at up-and-coming areas where they get better value for money. Tenants may also need to downsize to more affordable properties, which will affect activity in the residential property market,” said Jonathan Kohler, Founder and CEO of Landsdowne.

Kohler said VAT is a tax added to the price of goods and services, increasing the cost of daily necessities. Low-income households, which spend a larger portion of their income on essentials, will be hit the hardest.

Businesses, including developers of new homes, may also pass on higher costs to consumers, contributing to inflation and rising living expenses.

Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, warned that if affordability becomes a major issue, more people may opt to rent instead of buying, resulting in higher demand for rentals and possibly driving up rental prices.

Investors may view the VAT increase as a sign of economic strain, potentially reducing confidence in the property market. Foreign investors, in particular, might become more cautious about entering or expanding in South Africa’s property sector, said Watchprop.

Landlords often pass on increased costs-such as maintenance, utilities, and property management fees-to tenants, it said. A VAT increase could lead to higher rentals placing additional strain on tenants, especially those in lower-income brackets. This could also result in higher rental arrears as tenants struggle to keep up with rising costs.

“As living costs rise, tenants may seek more affordable rental options or downsize to smaller properties. This could increase demand for lower-cost rentals while reducing demand for mid- to high-end rental properties.”

The VAT increase will affect everyone. To lessen the impact of the increase, here are practical tips for buyers and tenants:

–Buy before prices rise: Those considering buying a home should act before the VAT hike takes effect to avoid paying more.
–Consider existing properties: VAT mainly applies to new developments, so purchasing an existing home could help buyers avoid the extra tax.
–Secure a good home loan: Consulting a mortgage expert early can help buyers lock in a favourable interest rate before market changes.
–Improve your credit score: A higher credit score increases the chances of home loan approval. Paying bills on time, reducing debt, and keeping credit card balances low can all help. Banks generally prefer scores of 610 or higher.
–Save for a deposit: While some banks offer 100% home loans (especially for first-time buyers), putting down a deposit of 10–20% can improve the chances of approval and reduce long-term costs.

Tenants will likely see higher electricity and water bills due to the VAT increase. Looking for properties with solar power or other cost-saving features can help cut expenses. Other strategies include:

–Negotiating rent: Some landlords may be open to discussions, especially for long-term tenants.
–Exploring more affordable options: Moving to a lower-cost area or a smaller property could ease financial pressure.

Kohler said that although the South African Reserve Bank’s hawkish stance on interest rates have tempered expectations of significant cuts, consumer confidence in the housing sector remains the highest in a decade, with many investors and buyers still feeling optimistic about the future.

“However, with the muted VAT increase filtering through the economy in coming months, both buyers and tenants will need to adjust their strategies to remain financially secure in a market that is likely to experience rising costs and a shallower than expected interest rate cycle,” he said.

Residential property market faces uncertainty amid interest rate concerns

South Africa’s residential property market is likely to encounter a turbulent period due to the South African Reserve Bank’s (SARB) decision to maintain its hawkish stance on interest rates.

Landsdowne Property Group, one of the largest residential real estate managers and estate agencies, says that rising living costs and the upcoming VAT hike could put the brakes
on positive momentum in the residential property market.

Jonathan Kohler, Founder and CEO of Landsdowne, said: “In an environment of rising living costs, affordability remains a major factor. The MPC’s decision to hold interest rates and concerns over economic growth will likely impact investor sentiment in the short term, as buyers adopt a wait-and-see approach.”

Kohler also noted that many potential buyers might decide to continue renting rather than purchasing, as a fixed-cost lease offers greater financial certainty in an uncertain economic climate.

However, he pointed to an adjustment in transfer duties that could stimulate buying activity in the more affordable property segments. Starting from 1 April 2025, properties valued up to R1.210 million will be exempt from transfer duty, an increase from the previous threshold of R1.1 million.

“This adjustment marks a significant and welcome shift for the property market, especially in the secondary sector. By boosting affordability in the lower- to middle-income brackets, we foresee heightened interest from first-time buyers and upward momentum across various property segments. This move has the potential to drive market activity and benefit both buyers and sellers,” Kohler said.

He further stated that the higher-end property market may not be as significantly impacted by the rise in transfer duties, as buyers in this segment typically have more financial flexibility.

Despite these concerns, investor confidence in the South African property market remains strong. The Absa Homeowner Sentiment Index for the fourth quarter of 2024 revealed that 85% of investors are optimistic about expanding their portfolios — the highest level of investor confidence since 2016.

“Expectations of stable or lower inflation and further interest rate cuts in May and possibly later this year are expected to continue to drive property investment, but at a slower pace. Savvy investors will want to lock in value now. Gauteng in particular offers exceptional value for money, as house prices have remained stagnant for almost a decade.”

The decision by MPC to maintain the interest rate at 7.50%, with the prime lending rate at 11%, has drawn criticism from several industry leaders, who argue that it was a missed opportunity for economic relief.

Samuel Seeff, Chairman of the Seeff Property Group, described the decision as “disappointing, and a missed opportunity to provide vital relief to consumers and property buyers, and a boost to the economy.” He pointed out that the US Federal Reserve had also kept interest rates unchanged, yet there were compelling reasons for the SARB to cut rates to stimulate growth.

“The news that inflation remained 3.2% for February provides further support that there is a window of opportunity given that inflation remains contained near the bottom of the Bank’s inflation target range while the currency has remained fairly stable,” Seeff added.

He said that the current interest rate is still 100 basis points higher than the pre-Covid level, despite inflation having decreased significantly. The high rate is, according to Seeff, “doing more damage than good to the economy, especially when it needs vital stimulus to boost growth and job creation.”

Despite these concerns, Seeff acknowledged that the property market had seen an uptick in activity this year, with sales volumes increasing and buyers taking advantage of favourable mortgage lending conditions.

Dr. Andrew Golding, CEO of Pam Golding Property Group, also weighed in on the MPC’s decision, calling it “disappointing for existing mortgage holders and aspirant home buyers.” With inflation at 3.2% in February 2025, below market expectations, many had hoped the SARB would lower rates to ease financial pressure on homeowners and prospective buyers.

Golding added: “While economists were divided ahead of the MPC decision, some argued that given the sluggish state of the local economy, real (inflation-adjusted) interest rates are too high, suggesting scope for further interest rate relief.”

However, there is a bright spot in the property market’s recovery. The Pam Golding Residential Property Index shows a steady rise in national house prices, which increased by +6.22% in February 2025, marking the strongest growth rate since late 2007.

Golding noted that growth in house prices has accelerated across the major regions, particularly in the Western Cape, where house prices rose by 6.04%, and Gauteng, where they grew by 4.5%.

He also highlighted the recovery in first-time buyer demand, as evidenced by the rise in home loan applications from first-time buyers.

Why the latest rate cut is a significant shift for South Africa’s property market

The property industry has welcomed the latest rate cut by the SA Reserve Bank’s monetary policy committee (MPC), calling it a significant shift that will likely improve market sentiment and potentially spark an uptick in buying activity.

SARB cut interest rates by 25 basis points on Thursday with the country’s prime rate now 11.00%, from 11.75% as recently as early September last year.

For a new R2 million home loan at the prime rate, monthly repayments have now decreased by approximately R1,000.

Landsdowne Property Group pointed to a likely significant positive shift in market sentiment for the property market and especially the Johannesburg market which needs rejuvenation.

Jonathan Kohler, Founder and CEO of Landsdowne said: “The cumulative 75 basis point reduction, which amounts to three quarters of a percent is a meaningful shift. Not only does this improve market sentiment, but it also enhances affordability, potentially sparking an uptick in buying activity.

“Each interest rate cut improves perceptions of the market and increases people’s willingness to purchase property. These reductions are exactly what Johannesburg needs to see a return of market activity.

Dr Andrew Golding, chief executive of the Pam Golding Property Group said the cut is encouraging for aspirant home buyers and those with existing mortgages, particularly as the outlook for interest rate relief has shifted significantly during recent weeks.

This is the third consecutive interest rate decrease, following reductions of 25bps at both the September and November 2024 MPC meetings, bringing the total interest rate relief in this current downward cycle to 75bps.

Golding said that although this month’s (January 2025) rate cut was widely anticipated, the outlook for interest rates for the remainder of the year is far less clear with opinions ranging from no further interest rate relief to one single cut of 25bps. “However, the timing of any further rate cut is also debated with some commentators suggesting March 2025 and others later in the year.”

This would make the current interest rate-cutting cycle unusually shallow, he said. This is largely a reflection of the heightened uncertainty in the current global economy amidst concerns of a resurgence in inflationary pressures which is making many central banks – and the SA Reserve Bank in particular -cautious.

“The stream of executive orders from the US White House is also creating uncertainty, prompting a reassessment of the likely scope for further interest rate cuts in the United States, which has shifted from initial expectations of three 25bps rate cuts to a single cut later this year.

“Fewer US interest rate cuts leave less space for local interest rate relief, and any further rate cuts will be dependent on developments both globally and locally,” said Golding.

Notwithstanding this potential uncertainty sentiment has improved, in general, with the previous two repo rate reductions of a cumulative 50bps in 2024 already creating a ripple effect across the residential property market – increasing uptake, particularly in the lower to middle sectors of the market, while also boosting confidence and activity in the luxury market, according to the agency.

Samuel Seeff, chairman of the Seeff Property Group said the latests cut was simply not enough.

A 50bps cut would have been far more meaningful, he said, adding that there was adequate support for the Reserve Bank to counter the economic stagnation and unemployment risks with a more robust cut.

“The country can no longer afford what is effectively the highest real interest rate in the world – differential between the interest rate and inflation – while the economy is limping along, barely growing, and unemployment is spiking.”

As a result of the 25bps rate cut, mortgage repayments will reduce by:

– R750 000 bond – from R7 869 to R7,741– thus saving R128
– R900 000 bond – from R9 443 to R9,290 – thus saving R153
– R1 000 000 bond – from R10 493 to R10,322 – thus saving R171
– R1 500 000 bond – from R15 739 to R15,483 – thus saving R256
– R2 000 000 bond – from R20 985 to R20,644 – thus saving R341
– R2 500 000 bond – from R26 231 to R25,805 – thus saving R426
– R3 000 000 bond – from R31,478 to R30,966 – thus saving R512
– R5 000 000 bond – from R52,463 to R51,609 – thus saving R854

(Based on a 20-year repayment period at the prime rate)