40% of Johannesburg’s population reside in Soweto. What was once seen as an area that offers low-cost housing, is now seeing a rise of millennial property buyers. Today’s trends indicate that people entering the property market are looking for a home that is simple – houses that are affordable, in great condition, and provides residents with a sense of community. Soweto offers this and then some.
Soweto provides potential homebuyers with affordable housing options that are within anyone’s budget.
Why are people looking for property in Soweto?
With 37 suburbs, Soweto has ample opportunities and properties that is to everyone’s taste. Thus far, there have been over 2 000 houses sold in the area. So, what makes Soweto a desirable investment spot?
Plenty of development in progress
Whether it’s commercial or residential, developments in an area will help with raising the value of homes in the area. Property developments also help attract new homebuyers (like millennials) because this means that there is a hive of economic activity in the area – if there’s commercial development.
Soweto has also seen a hive of entrepreneurial activity lately, with plenty of small businesses setting up in the area. Soon enough, it may be an entrepreneurial hub, which will attract more people. With residential development, it highlights that there is a sense of community, which is one of the elements new homebuyers are looking for.
In October 2019, there were a total of 1444 houses on the market.
One of the latest trends are homebuyers looking to live in the suburbs. Once, the city centre offered a glitzy nightlife and busy lifestyle. Today, people want to find a space to relax, away from their 9-5. This is why millennials are opting for a suburban neighbourhood with enough amenities and decent transportation routes.BOOK NOW
Soweto property overview
Soweto provides potential homebuyers with affordable housing options that are within anyone’s budget. According to Property24, this is what the property market in Soweto is looking like:
Majority of stable homeowners in Soweto are aged 65 and older.
Houses vs apartments
There have been over 2 800 houses sold in 2019, with an average sale price of R67 000. 271 apartments were sold in the area this year with an average price of R335 699. When it comes to affordable housing, Soweto provides you with great opportunities. For a home, the average value is R490 000 and for an apartment, you could expect to pay an average of R450 000.
So, why have there been more houses sold than apartments? While apartments offer simple living, the design may restrict – and doesn’t really allow for people to renovate. With a home in Soweto, the price is affordable and allows for renovation.
How many houses are on the market in Soweto?
In October 2019, there were a total of 1444 houses on the market. Three-bedroom houses were popular on the market with 627 properties available to purchase. There were 507 two-bedroom homes on the market. So, what can you expect to pay for a three-bedroom house in Soweto? Over R800 000 while a two-bedroom could cost you over R640 000.BOOK NOW
Who owns property in Soweto?
New homeowners are always looking at the demographics of an area. A married couple looking to start their life in the area is not necessarily looking for an area that is noisy or filled with a younger demographic.
Majority of stable homeowners in Soweto are aged 65 and older. These are likely residents that have lived for years in the area – and raised their family. As for recent homebuyers, people aged between 36 – 49 years old have seen the value in the area. The same age demographic is also the majority of the people selling their homes in the area. This could be because they’re downsizing.
Is there an opportunity for you to invest in Soweto?
With the right property strategy, you’ll have the chance to build a decent property portfolio in the area. With the affordable apartment price, you could invest and become a landlord or purchase a property and flip it for a decent profit.
Join us at our free property investment seminars and find out which property investment will suit your goals.BOOK NOW