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Yes, the analysis of Johannesburg's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Sandton? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other suburbs like Rosebank or Parkhurst where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Johannesburg Property Pack.
Will property prices increase in Johannesburg in 2025?
No, property prices in Johannesburg are not expected to rise significantly in 2025, due to a combination of economic challenges and market dynamics.
Backed by our fresh, in-depth market analysis, we’re cautious about the outlook for Johannesburg, as several factors could hinder substantial price growth.
While there are some positive developments, the prevailing economic conditions and market trends suggest a more subdued property market in the near future.
Signals pointing to a property price increase in Johannesburg
Here are some factors suggesting prices could increase:
The ongoing urban regeneration projects in key areas of Johannesburg are expected to enhance the appeal of these neighborhoods, potentially driving up property values as demand increases for revitalized urban living spaces.
A growing trend of young professionals and families seeking affordable housing options in Johannesburg's suburbs could lead to increased demand in these areas, supporting price growth in the mid-range property market.
Government initiatives aimed at improving infrastructure and public services in Johannesburg are likely to make certain areas more attractive to buyers, potentially boosting property values in those regions.
Signals pointing to a property price decrease in Johannesburg
Here are some factors suggesting prices could fall:
Economic instability and high unemployment rates in South Africa are expected to continue affecting consumer confidence and purchasing power, leading to reduced demand for property in Johannesburg.
Rising interest rates are making it more difficult for potential buyers to secure affordable mortgages, which could dampen demand and put downward pressure on property prices.
An oversupply of properties in certain areas of Johannesburg, particularly in the luxury segment, is likely to lead to increased competition among sellers, potentially driving prices down.
The ongoing challenges in the South African economy, including inflation and currency volatility, are expected to impact the real estate market negatively, as potential buyers may delay purchasing decisions.
Political uncertainty and policy changes in South Africa could create an unpredictable investment environment, discouraging both domestic and international buyers from entering the Johannesburg property market.
The slow pace of economic recovery post-pandemic is likely to continue affecting the real estate market, as many potential buyers remain cautious about making significant financial commitments.
A lack of significant foreign investment in Johannesburg's property market could limit the potential for price growth, as international buyers often play a crucial role in driving demand and increasing property values.
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If property prices go up in Johannesburg, how much would they increase by?
If real estate prices in Johannesburg were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Johannesburg appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom apartment in Sandton for 1,500,000 ZAR today, don't be surprised if it's priced between 1,545,000 and 1,605,000 ZAR this time next year.
To give you a better understanding, here is a table that shows 7 types of Johannesburg real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (ZAR) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Sandton (60 sqm / 646 sqft) | 1,500,000 ZAR | 1,545,000 ZAR | 1,575,000 ZAR | 1,605,000 ZAR |
| Modern Apartment in Rosebank (75 sqm / 807 sqft) | 2,000,000 ZAR | 2,060,000 ZAR | 2,100,000 ZAR | 2,140,000 ZAR |
| Luxury Penthouse in Sandhurst (100 sqm / 1,076 sqft) | 5,000,000 ZAR | 5,150,000 ZAR | 5,250,000 ZAR | 5,350,000 ZAR |
| Studio in Braamfontein (30 sqm / 323 sqft) | 800,000 ZAR | 824,000 ZAR | 840,000 ZAR | 856,000 ZAR |
| Loft in Maboneng (80 sqm / 861 sqft) | 1,800,000 ZAR | 1,854,000 ZAR | 1,890,000 ZAR | 1,926,000 ZAR |
| Townhouse in Bryanston (150 sqm / 1,615 sqft) | 3,500,000 ZAR | 3,605,000 ZAR | 3,675,000 ZAR | 3,745,000 ZAR |
| Investment Property in Melville (50 sqm / 538 sqft) | 1,200,000 ZAR | 1,236,000 ZAR | 1,260,000 ZAR | 1,284,000 ZAR |
Everything you need to know is included in our Property Pack for Johannesburg
If real estate prices go up in Johannesburg, which areas are likely to see the biggest increases?
Today, people who want to move to Johannesburg seek a blend of urban sophistication and vibrant social scenes, which Rosebank delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Braamfontein has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Johannesburg market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Rosebank | High | Recent development of luxury apartments and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Sandton | High | Expected rise due to limited housing stock, upcoming renovations to commercial spaces, and growing demand for prime properties in central Johannesburg. |
| Maboneng | Medium-High | Ongoing gentrification and new cultural hubs, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Fourways | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Parkhurst | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Melville | Medium | Investment in local infrastructure, such as the extension of public transport lines and renovation of historic areas, is boosting long-term value. |
| Braamfontein | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Bryanston | Medium-High | Its proximity to Sandton, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Soweto | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Hyde Park | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Houghton Estate | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, prestigious location. |
-The best areas to buy a property in Johannesburg
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation?
In 2025, Johannesburg real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Johannesburg, such as Sandton and Fourways, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense areas like Johannesburg's city center, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Johannesburg's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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