The crowd-sourced database of comparative living costs Livingcost.org named Bloemfontein in the Free State one of the world’s most affordable cities.
“The average cost of living for one person in Bloemfontein, including rent, is $644 (R12,274),” says CEO of BetterBond Carl Coetzee. “It ranks the city among the top 23% of least expensive cities in the world.”
Furthermore, Lightstone property data shows the Free State has the highest ratio of affordable properties. “With its favourable cost of living and accessible property prices, Bloemfontein has seen a boom in property sales in the past two years, with sectional title properties performing particularly well,” says Coetzee.
Property24 data shows that sectional title sale volumes have remained above 2,600 annually since 2021. This increased demand has pushed up the average sectional title sale prices from R750,000 in 2020 to R950,000 currently. “Yet, compared with other regions, these prices are still competitive and appealing to particularly first-time buyers,” says Coetzee.
In Cape Town, the average sale price of a sectional title unit is currently R1.7m. Property24 reports that almost a third of buyers in Bloemfontein in the past year were between the ages of 18 and 35. “Many of these buyers would benefit from the government’s R1.1m transfer duty threshold. Furthermore, buyers of properties in the many new developments coming onto the market in Bloemfontein would also be exempt from paying transfer duties.”
New developments, such as the Arcata Lifestyle Estate in the east of the city, appeal to new buyers looking for low-maintenance properties with an array of lifestyle amenities. Bloemfontein’s appealing lifestyle also makes it an attractive option for families. Property24 data shows that 35.7% of buyers in the past year were between the ages of 36 and 49.
“Bloemfontein is the ideal city to raise a family and put down roots,” says Coetzee. Many families from other provinces, with children at top schools such as Grey College and St Andrews, buy property near the schools to use during term time. Students who move to the province to study at the University of the Free State often buy their first properties in the area. “We are also seeing a growing interest in buy-to-let investment to meet the increased demand for student accommodation,” he says.
The Free State offers plenty of economic and employment opportunities, with the Free State Development Corporation providing support to SMMEs, manufacturing, trade and the promotion of investment. Two of the province’s outstanding characteristics are its contribution to South Africa’s staple food production and its location, sharing boundaries with six other provinces and the Kingdom of Lesotho.
It also provides access for contractors to the vast Lesotho Highlands Water Project. With a sharp decline in rail transport, the Free State has become a crucial hub for road freight – especially the Harrismith node on the N3, and the N8 corridor.
