Authored by the expert who managed and guided the team behind the South Africa Property Pack
Yes, the analysis of Johannesburg's property market is included in our pack
The Johannesburg property market offers diverse investment opportunities with average prices around ZAR 1.5 million and rental yields ranging from 7% to 12% across different suburbs.
Property prices have grown by an average of 23% over the past five years, though performance varies significantly by location, with premium suburbs like Sandton and Fourways showing stronger market fundamentals than inner-city areas. As of September 2025, investors can expect mortgage repayments of ZAR 15,000 to ZAR 17,000 monthly on median-priced properties, while the city's projected population growth of 1.9% annually supports long-term demand.
If you want to go deeper, you can check our pack of documents related to the real estate market in South Africa, based on reliable facts and data, not opinions or rumors.
Johannesburg's property market presents mixed opportunities with citywide average prices of ZAR 1.5 million and rental yields of 7-12% depending on location.
Premium suburbs like Sandton, Fourways, and Bryanston offer lower vacancy rates (5-7%) and higher household incomes, while the city faces challenges with a crime index of 80.8.
| Key Metric | Current Value | Market Context |
|---|---|---|
| Average Property Price | ZAR 1.5 million | Varies significantly by suburb |
| 5-Year Price Growth | 23% average (8.6%-45% range) | Premium areas outperforming city center |
| Rental Yields | 7%-12% | Bedfordview up to 16.4%, Randburg ~11% |
| Vacancy Rate | 8-12% citywide | Premium suburbs 5-7% |
| Average Sale Time | 97 days | Top areas 52-57 days |
| Monthly Mortgage Payment | ZAR 15,000-17,000 | Based on ZAR 1.5M, 20-year term, 11% rate |
| Property Taxes | 0.5%-1% annually | ZAR 7,500-15,000 per year on average home |
What's the average property price in Johannesburg right now?
The average property price in Johannesburg is approximately ZAR 1.5 million as of September 2025.
This figure represents the citywide median, but prices vary dramatically depending on the specific suburb and property type. Premium areas like Sandton, Fourways, and Bryanston command significantly higher prices, often exceeding ZAR 3 million for quality residential properties.
Apartments typically see higher per-square-meter pricing compared to standalone houses, particularly in well-located urban nodes. Mid-tier suburbs like Randburg and Roodepoort offer properties in the ZAR 1.2 to ZAR 2 million range, while more affordable areas can still provide options below the city average.
The inner city areas have experienced price pressures, with some properties trading below historical peaks due to urban decay and security concerns affecting desirability.
It's something we develop in our South Africa property pack.
How much have property prices changed in the past five years?
Johannesburg property prices have increased by an average of 23% over the past five years, though this growth has been highly uneven across different areas.
The strongest performing suburbs have seen price increases between 35% and 45%, particularly in well-managed security estates and premium residential nodes like Fourways, Midrand, and parts of the Northern Suburbs.
Mid-tier suburban areas have generally experienced more moderate growth in the 15% to 25% range, while some inner-city locations have actually declined in value due to infrastructure challenges and security concerns.
This price growth has been driven by limited supply of quality housing, population growth, and flight to safer suburban areas, though it has been tempered by economic challenges and higher interest rates affecting affordability.
What's the average rental yield buyers can expect in Johannesburg?
Rental yields in Johannesburg range from 7% to 12% gross annually, depending on the location and property type.
The highest yields are typically found in areas like Bedfordview, which can achieve up to 16.4% gross rental yields, particularly for well-positioned apartments and townhouses. Randburg and Braamfontein commonly deliver around 11% yields, especially for 1- to 2-bedroom units popular with young professionals.
Premium suburbs like Sandton and Fourways generally offer lower yields in the 7% to 9% range due to higher property prices, but these areas compensate with lower vacancy rates and more reliable tenant profiles.
Student accommodation and properties near universities or business districts tend to achieve the higher end of the yield spectrum, while luxury residential properties typically yield less but offer better capital appreciation prospects.
What's the current vacancy rate for rentals in Johannesburg?
The vacancy rate for rental properties in Johannesburg averages 8% to 12% citywide as of September 2025.
Premium suburbs such as Bryanston, Fourways, and Sandton experience significantly lower vacancy rates of 5% to 7%, reflecting strong demand from affluent tenants and expatriate communities.
Areas popular with students and young professionals may have even lower vacancy rates during peak leasing seasons, particularly around universities and major business districts.
The higher citywide average reflects challenges in certain areas where security concerns or infrastructure issues have affected rental demand, though well-managed properties in good locations consistently maintain high occupancy levels.
Don't lose money on your property in Johannesburg
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How many new developments are planned or under construction in Johannesburg?
Johannesburg has several major residential developments underway, with the most significant being the Southern Farms Mega City Project in Joburg South, which plans to deliver over 43,000 new housing units over the next decade.
In Sandton, multiple luxury apartment developments are currently under construction, targeting the high-end market with modern amenities and enhanced security features.
Midrand continues to see substantial development activity, including projects like Steyn City and Polofields, which offer mixed-use residential estates with golf courses and commercial facilities.
These developments are strategically located to serve the growing demand from middle and upper-income households seeking modern, secure living environments with good access to business districts and amenities.
What's the average household income in different areas of Johannesburg?
The average household income across Johannesburg is approximately ZAR 14,800 to ZAR 15,000 per month, but this varies dramatically by suburb.
| Area Category | Average Monthly Household Income | Typical Suburbs |
|---|---|---|
| Premium Areas | ZAR 27,500 - 28,500 | Fourways, Sandton, Midrand |
| Upper-Middle Areas | ZAR 20,000 - 25,000 | Bryanston, Randburg, Roodepoort |
| Middle-Income Areas | ZAR 12,000 - 18,000 | Bedfordview, Germiston, Kempton Park |
| Lower-Middle Areas | ZAR 8,000 - 12,000 | Soweto, Alexandra, Inner City |
| Entry-Level Areas | ZAR 3,000 - 8,000 | Township areas, informal settlements |
How much do property taxes and levies typically cost per year in Johannesburg?
Property taxes and municipal levies in Johannesburg typically range from 0.5% to 1% of the property's municipal value annually.
For an average property valued at ZAR 1.5 million, owners can expect to pay between ZAR 7,500 and ZAR 15,000 per year in municipal rates and taxes.
Higher-value properties in premium areas face proportionally higher absolute amounts, while properties in sectional title schemes may have additional levies for common area maintenance and security that can add ZAR 1,000 to ZAR 3,000 monthly.
These costs have generally increased in line with or slightly above inflation, making them a significant ongoing expense that investors must factor into their return calculations.
It's something we develop in our South Africa property pack.
What's the crime rate in Johannesburg compared to other areas?
Johannesburg ranks third in Africa for crime, with a crime index of 80.8 as of 2025, placing it fifth globally among major cities.
The city has a higher crime rate than most other South African metropolitan areas, with only Pietermaritzburg and Pretoria showing similar or higher crime statistics.
Suburban areas generally offer significantly better security than the inner city, with gated communities and security estates providing the lowest crime exposure through private security, access control, and community policing initiatives.
This crime reality has directly impacted property values, with secure suburban developments commanding premium prices while inner-city properties have seen declining values despite their potential convenience and infrastructure access.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How long does it typically take to sell a property in Johannesburg?
The average time to sell a property in Johannesburg is approximately 97 days, or just over three months, as of September 2025.
Properties in the most desirable areas like Discovery in Roodepoort can sell within 52 to 57 days due to strong demand and limited supply of quality homes.
Luxury properties and those in the upper price brackets typically take longer than the average, often exceeding 100 days as they cater to a smaller pool of qualified buyers.
Market conditions, pricing strategy, and property condition significantly impact sale timelines, with well-priced properties in good condition and secure areas moving fastest.
What's the average return on investment over the past ten years in Johannesburg?
The average annual return on investment for Johannesburg residential property has been between 3% and 5% per year (compounded) over the past ten years.
This return calculation includes both capital appreciation and rental income, though performance varies significantly by price segment and specific suburb.
Premium areas and well-located security estates have generally delivered returns at the higher end of this range, while properties in declining areas or those affected by crime and infrastructure issues have underperformed.
Investors who focused on rental yield properties in stable middle-income areas have often achieved more consistent returns than those chasing capital growth in luxury segments.
It's something we develop in our South Africa property pack.
How much are typical monthly mortgage repayments for properties in Johannesburg?
Monthly mortgage repayments for a median-priced property in Johannesburg (ZAR 1.5 million) typically range from ZAR 15,000 to ZAR 17,000 per month.
These calculations assume a 20-year loan term with a 90% loan-to-value ratio at current prime interest rates of approximately 11%.
Higher-priced properties in premium areas would require proportionally higher repayments, with a ZAR 3 million property requiring monthly repayments of ZAR 30,000 to ZAR 34,000 under similar terms.
Interest rate changes directly impact these calculations, and buyers should factor in potential rate increases when assessing affordability and investment returns.
What's the projected population growth in Johannesburg over the next decade?
Johannesburg's population is projected to grow by approximately 1.9% per year, reaching about 6.5 million people by 2040.
This represents roughly 66% growth over the next 30 years, driven by urbanization trends, economic opportunities, and migration from other provinces and neighboring countries.
The growth is expected to be concentrated in suburban areas and new developments rather than the inner city, supporting demand for middle-income housing and rental properties.
This population growth underpins long-term property demand, though infrastructure development and service delivery will be critical factors in determining which areas benefit most from this demographic expansion.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Johannesburg presents a complex property investment landscape with significant opportunities and notable challenges that require careful consideration.
While rental yields of 7-12% and population growth of 1.9% annually support investment fundamentals, the high crime index of 80.8 and uneven price performance across different areas demand thorough location-specific research before making investment decisions.
Sources
- TheAfricanvestor - Average House Price in Johannesburg
- TheAfricanvestor - Johannesburg Property Market Trends
- Global Property Guide - South Africa Rental Yields
- TheAfricanvestor - Average Rent Johannesburg
- SA Cities Network - Johannesburg Findings
- City of Johannesburg - Housing Project
- TheAfricanvestor - Johannesburg Market Data
- Business Day - African Cities Crime Rates
- Lightstone Property - Market Analysis
- Expatica - Getting a Mortgage in South Africa