While the focus is often on the higher priced suburbs, there are many more affordable options available for first-time property buyers in the R600.000 to R1.3m range which fall within the transfer duty exemption threshold of R1.21 million, according to the Seeff Property Group.
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Based on Lightstone data, young buyers are the second-largest buyer group behind the “settled” group (ages 36–50), accounting for about 30% of all residential purchases with the highest percentages in the larger metros. The majority of their purchases are usually mortgaged.
Of the three main metros, Durban is generally the most affordable for first home buyers with average prices of R650,000 to R1.4 million. Entry-level apartments are at the lower end, while typical coastal sectional titles or small family homes average on the higher side.
This is followed by Johannesburg, with an average range of R800,000 to R1.2 million which typically covers 1 to 2-bedroom sectional title apartments or entry-level homes along major transit/Gautrain corridors.
Cape Town is at the higher end of price scale with the average first home buyer price in the R1 million to R1.5 million range which typically offers smaller spaces.
Younger buyers tend to favour sectional title properties such as apartments and townhouses, and also purchase in security estates. They are also increasingly keen investors seeking rental income.
Johannesburg/Pretoria
The Joburg and Pretoria region is home to the highest influx of young buyers with about 35% below 35-years of age. It offers a large, diversified market with 65% of property transactions falling below R1.5m.
Soweto and the Southern Suburbs of Johannesburg offer some of the most affordable prices with good transport access. According to Khosi Sibiya and Phindi Mphahlele, licensees of Seeff Soweto, entry level prices range on average from R650,000 in areas such as Protea Glen to about R1.7m in the aspirational node of Diepkloof.
Joburg South has a number of highly accessibly priced suburbs in the R850,000 to R1.6 million range. East Rand areas such as Boksburg, Benoni and Alberton also offer great value apartments and townhouses in the R700,000 to R1.6 million range.
Randburg and Joburg North West are also top choices for entry level buyers, including Weltevreden Park, from around R950,000 on average, and Strubens Valley, Wilgeheuwel, Radiokop, Allen’s Nek, and Honeydew in the R800,000 to R2.8 million range.
While prices close to the Sandton CBD is beyond the reach of most first-time buyers, nearby suburbs such as Douglasdale and Lonehill offer good value entry-level homes, says Charles Vining, MD for Seeff Sandton. Starter apartments average around R700,000 to R1.2 million. Lonehill also provides enhanced security estate living for first-time buyers at an average entry point of R1.4 million. Midrand (Vorna Valley/Halfway Gardens) also offer outstanding value in the R850,000 to R1.2 million range.
While Pretoria East is renowned for its luxury homes, Gerhard van der Linde, MD for Seeff Pretoria East says Equestria and Moreleta Park are very popular for first-time buyers with a choice of apartments and townhouses in the R850,000 to R1.35 million range.
Centurion offers one of the best areas for first home buyers due to its transport access, schools and amenities, says Tiaan Pretorius, manager for Seeff Centurion. Areas for first time buyers include Die Hoewes, The Reeds and Eco Park (R800k to R1.35m), and Amberfield (R1.1m – R1.5m) offering newer lifestyle estates and modern townhouse developments close to major retail zones.
Cape Town
Due to the higher property prices, only around 27% of buyers are below 35-years of age. In the Atlantic Seaboard area, the lowest entry prices are in the CBD at R1.35m to R1.95m for a small, entry level unit.
Close to the CBD, Woodstock, Salt River, and Observatory offer some entry level units at around R900k-R1.95m, but generally, the northern and eastern commuter corridors offer more affordable pricing.
These include Goodwood, Parow and surrounds which offers pricing of R650,000 to R1.5 million for entry-level buyers. Brackenfell (R1.4m-R1.8m), and Kraaifontein (R950k– R1.3m), along the N1 corridor, offers middle-class starter homes and townhouses for families.
Table View and Parklands offers a premier coastal commuter node with a great lifestyle and top amenities. Parklands features high youth activity with prices averaging around R1.15 million to R1.45 million for a small entry-level property.
KwaZulu-Natal
The northern and western suburbs of the Durban Metro offer excellent affordability. The Queensburgh area is popular for its accessibly priced starter homes and sectional titles averaging R950,000, according to Michelle Vermeulen, Seeff’s licensee for the area.
Other accessible areas include Glenwood, favoured for its solid older apartments, generally in the R900,000 to R1,400,000 range, and Morningside (Lower) in the R1,200,000 to R1,800,000, popular for proximity to Florida Road.
Westville offers access to excellent schools and entry-level sectional titles in the R1,300,000 to R1,600,000 range. Umhlanga Ridge is the “go-to” area for high-earning entry-level buyers, offering a modern “lock-up-and-go” lifestyle near Gateway, generally in the R1,600,000 to R2,800,000 range.
