Higher Demand Properties
Properties in the higher price bands (around R2 million and around R5 million) are in higher demand compared to properties in the lower price band (around R600,000) in South Africa's six major metros during 2021 and 2022. Here are some key observations:
1. Cape Town dominates the upper price band (around R5 million) in terms of both stock count and sales activity. This indicates a strong demand for high-end properties in the city.
2. Johannesburg and Ekurhuleni lead in the lower price band (around R600,000) in terms of both stock count and sales activity. This suggests that these areas are more sought after by buyers looking for more affordable housing options.
3. The total stock units in the selected price bands across the six metros amount to 433,000 units. However, the total sales over the two years were only 38,000 units, which is just under 9% of the total stock. This indicates that the overall demand for properties in these price bands might not be extremely high, but they still account for a notable portion of the market.
4. The percentage of sales to stock increases as the properties become more expensive, indicating that higher-income earners have been less impacted by economic challenges than lower-income earners. This suggests that the luxury property market has been relatively resilient during the specified period compared to the more affordable housing segments.
Overall, it seems that high-end properties in Cape Town, as well as properties in the lower price range in Johannesburg and Ekurhuleni, are experiencing strong demand in the South African property market. These trends can be attributed to varying economic factors and preferences among buyers in different income brackets.