House sales in the northern suburbs of Johannesburg are increasing significantly, as affluent buyers move from other parts of the country.
This was according to Rory O’Hagan, principal of Chas Everitt International, who said Johannesburg had registered home sales worth R946 million in the 12 months to the end of August, compared to R777 million in the previous 12 months and R352 million in the 12 months before that.
This reflected the rise in the number of sales rather than rising prices. ‘Our actual unit sales across the northern suburbs have almost quadrupled in the past three years, while prices in most areas have only risen by between 4% and 6% a year,’ said O’Hagan
The surge has happened despite disenchantment with the Johannesburg city council, O’Hagan said.
After 2020, many people moved to the Western Cape, Eastern Cape, and KwaZulu-Natal because they could work remotely.
According to O’Hagan, the gap that they left was filled by buyers who were stuck in apartments and smaller homes during the lockdowns. First-time buyers could purchase the apartments and townhouses that were vacated by the upgraders.
Recently there has been a return of significant numbers of high-end buyers from the Western Cape in particular.
Some are keen to have a base in Johannesburg, if not a permanent home. Families are also returning permanently, especially to the top lifestyle estates and luxury cluster homes.
Air travel has become more expensive, making a weekly commute to Johannesburg less feasible. People also want more interaction with colleagues, friends, and family, said O’Hagan.
There had also been an increase in inquiries from potential immigrants since the initiation of the African Continent Free Trade Agreement.
Furthermore, Europeans and Britons who have visited South Africa are moving here permanently to escape the effects of the Ukraine war, rocketing inflation and the energy crisis. They also want better weather, an outdoors lifestyle and new business opportunities, O’Hagan commented.