Property sales in Johannesburg and surrounding areas have significantly decreased over the years. In 2015, there were 82,675 properties sold, but in 2020, this number dropped to 58,126. Last year, only 54,659 properties were sold, and the trend seems to continue.
The high interest rates, currently at a 15-year high, are affecting property values across the board. However, the low-value market, consisting of properties under R250,000, is still showing growth with a national price inflation of over 10%.
Despite the overall decline in property values, Johannesburg stands out as one of the hardest-hit cities. Many potential buyers are backing out due to financial constraints, exacerbated by debts to utilities and a lack of affordability.
The city’s deteriorating infrastructure, coupled with political instability, adds to the reluctance of investing in properties in Johannesburg. The uncertainty surrounding the government’s ability to manage the city further deters buyers and sellers alike.
With the economic challenges facing Gauteng residents, the future of the property market remains uncertain, highlighting the need for a shift in policies and economic stability.