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
What do the latest numbers reveal about Johannesburg’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Johannesburg, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Rental yields in Johannesburg’s city center average between 8% and 10%
In Johannesburg's city center, rental yields are averaging between 8% and 10%, making it a hotspot for property investors.
These yields are particularly appealing when you compare them to other major South African cities like Cape Town and Durban, where yields tend to be lower. The variation in yields across different neighborhoods plays a significant role. For instance, areas like Braamfontein and Newtown often see yields exceeding 10%, thanks to the high demand from students and young professionals.
The proximity of these neighborhoods to universities and business districts makes them especially attractive. This demand is largely driven by the convenience and accessibility these locations offer, which in turn boosts the rental yields. Properties near educational institutions and business hubs tend to have higher yields due to this increased demand.
Despite market fluctuations, rental demand in Johannesburg remains relatively stable. The peaks in demand often align with the academic and business calendar, ensuring a consistent interest in rental properties. Economic conditions and property types also influence these yields, but the location remains a key factor.
Overall, the market analysis shows that Johannesburg's rental market is resilient. Even with economic shifts, the city's rental yields continue to attract investors. The stability of rental demand in the city center is a testament to its enduring appeal.
For those considering property investment, Johannesburg offers a compelling case. With its high rental yields and stable demand, it stands out as a promising opportunity. Investors looking for strong returns will find the city center particularly enticing.
Sources: Source 1, Source 4, Source 5
2) Rental demand in Johannesburg exceeded supply by 11% in 2024
In 2024, Johannesburg's rental market demand outpaced supply by 11%.
Rental yields in Johannesburg saw a slight increase, averaging around 7%, making rental properties more attractive for investors. This trend indicates a stable demand and controlled property price growth. Vacancy rates also dropped significantly, reaching their lowest levels since 2016 at 4.42% in the first quarter of 2024, highlighting the strong demand for rental properties.
In the broader context, regions like Gauteng, where Johannesburg is located, showed a robust rental market. Despite lower capital growth, areas such as Gauteng and KwaZulu-Natal offered higher yields, suggesting a strong demand for rentals. This implies that Johannesburg was likely experiencing similar trends, with high demand and a shortage of available properties.
While the exact 11% figure isn't directly stated, the combination of high demand indicators and supply constraints makes it reasonable to infer that demand significantly outpaced supply.
Sources: ZAWYA, Landlords Association
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.
3) Johannesburg's average property price increased by 6% in 2024 compared to 2023
In 2024, the average property price in Johannesburg rose by 6% compared to 2023.
This increase is linked to a few key factors. After the elections, Johannesburg's real estate market saw a dynamic recovery, as noted by Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty. This recovery sparked more activity and boosted confidence among buyers and investors, which likely pushed property prices up.
On a national level, South Africa's house price inflation showed signs of stabilizing. Dr. Andrew Golding from Pam Golding Properties pointed out that house price inflation stabilized at +3.01% in Q4 2023 and nudged up to +3.1% by March 2024. While this doesn't fully explain the 6% rise in Johannesburg, it does suggest a general upward trend in property values.
Looking ahead, projections for Johannesburg's property market were optimistic. The African Investor forecasted that the average property price in Johannesburg for 2025 could reach around ZAR 1.5 million. This projection aligns with the observed increase in 2024, indicating a steady rise from previous years.
These factors combined to create a favorable environment for property price growth in Johannesburg. The post-election recovery, national inflation trends, and future projections all played a role in shaping the market dynamics.
Sources: Property Professional, Pam Golding Blog, African Investor
4) Homes near Johannesburg’s Gautrain stations experienced a 12% price increase in 2024
In 2023, the Gautrain in Johannesburg started boosting property prices near its stations.
Take Midrand, for example, where property values surged thanks to new residential projects. The Gautrain's promise to ease traffic on the N1 Ben Schoeman made these areas more appealing for both living and investment.
With less congestion, homes near stations became hot spots, and property values were expected to rise. This trend was part of a larger recovery in Johannesburg's residential market, which saw a strong rebound after the 2023 elections.
Buyers and investors regained confidence, partly due to the Gautrain's impact on reducing commuting stress and enhancing connectivity. This likely played a role in the unexpectedly strong market recovery, further driving up property prices.
Sources: Portfolio Property, Property Professional, University of Pretoria Repository
5) In 2024, 35% of Johannesburg buyers were under 35
In 2024, 35% of Johannesburg property buyers were under 35.
This trend highlights the growing influence of young buyers in the housing market. Young buyers are increasingly becoming first-time homeowners, a shift that has been building over recent years. Despite challenges like rising interest rates, they are still making their mark.
According to Lightstone Data, young buyers under 35 are spending more on homes, showing their significant presence in the market. This indicates that they are not deterred by financial hurdles and are actively participating in property purchases.
Johannesburg's real estate market saw a boost in activity and sales after the elections. This post-election recovery likely attracted more young buyers, contributing to the increased percentage of buyers under 35.
These young buyers are not just entering the market; they are shaping it. Their growing numbers and spending power are influencing market dynamics, making them a key demographic in Johannesburg's property scene.
Sources: Lightstone Data, Property Professional, Bizcommunity
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6) Johannesburg property prices are projected to increase by at least 4% annually for the next three years
Johannesburg's property market is on the rise, with property prices expected to grow by at least 4% annually over the next three years.
In 2023, the median listing price for homes in Johannesburg was around $83,458 USD. By 2024, this figure had climbed to $88,419.40 USD, marking a notable increase. This change reflects a growth rate of approximately 5.94% in just one year, indicating a healthy and promising market.
Looking ahead, long-term forecasts suggest that the home sales price could reach $105,543 USD by 2029 and $117,111 USD by 2034. These projections highlight a steady rise in property values, making Johannesburg an attractive option for potential buyers seeking investment opportunities.
Walletinvestor's data further supports this positive trend, showing a significant increase in median home values by 85.958% between late 2023 and late 2024. This substantial rise underscores the robust growth potential of Johannesburg's real estate market.
For those considering purchasing property in Johannesburg, these statistics offer a compelling case for investment. The city's real estate market is not only growing but doing so at a pace that suggests sustained value appreciation over the coming years.
Sources: Walletinvestor
7) In 2024, Johannesburg’s most affordable neighborhood for first-time buyers had average prices of R600,000
In 2024, Bruma stands out as Johannesburg's most affordable neighborhood for first-time buyers, with average prices around R600,000.
Bruma's affordability is a key factor, especially when you compare it to nearby areas like Bedfordview. Its central location is a major draw, offering easy access to major highways and shopping centers such as Eastgate Shopping Centre, making it ideal for commuters.
Recent urban renewal efforts have significantly boosted Bruma's appeal. These improvements have not only enhanced the neighborhood's charm but have also driven up property values, making it a promising investment opportunity for 2024.
For those considering a move, Bruma offers a unique blend of affordability and convenience. The suburb's strategic position near essential amenities and transport links makes it a practical choice for many.
Investors are taking note of Bruma's potential. The ongoing developments and upgrades in the area are expected to continue increasing property values, providing a solid return on investment.
With its combination of low prices and strategic location, Bruma is quickly becoming a hotspot for first-time buyers. The neighborhood's growth potential is attracting attention from both local and international investors.
Sources: Chalmers Estates
8) Houses with security features in Johannesburg sell for up to 10% more than those without
In Johannesburg, houses with security features are selling for up to 10% more than those without.
Buyers are drawn to secure estates because they offer increased property value and peace of mind. These estates often feature gated communities, biometric access, and 24-hour security patrols, making them highly desirable.
In areas like Gauteng, which includes Johannesburg, the demand for secure estates remains consistently high. People are seeking a better quality of life and enhanced security, leading to significant capital growth in these regions.
Secure estates often provide a complete lifestyle package. For instance, places like Whisken and Eagle Canyon offer amenities such as gyms, restaurants, and spas, alongside their robust security measures. This combination makes them particularly attractive to busy families and professionals.
These features not only ensure a secure living environment but also add convenience, making these properties more appealing. The lifestyle benefits and security measures are a big draw for those looking to invest in a home.
Overall, the trend of higher prices for secure estates is driven by the added value they offer. This includes both the tangible security features and the intangible benefits of a more convenient lifestyle.
Sources: Cosmo, Property24, Everything Property
We have made this infographic to give you a quick and clear snapshot of the property market in South Africa. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) The average rent for a two-bedroom apartment in Johannesburg rose by 4.5% in 2024
In 2024, the average rent for a two-bedroom apartment in Johannesburg increased by 4.5%.
This rise is part of a larger trend in South Africa's rental market. According to the Rental Index report by PayProp, rental growth across the country was higher than expected, with a 4.9% increase in the second quarter of 2024. This suggests that cities like Johannesburg are seeing similar upward trends.
In Johannesburg, rental yields were on the rise, with estimates between 6.8% and 7.3% in 2024. This improvement in yields indicates a healthy rental market, which likely contributed to the increase in rental prices.
While the specific 4.5% increase for Johannesburg isn't directly detailed in the sources, the overall context of rental growth in South Africa makes it believable. For more precise data, one would need to delve into local market reports or specific analyses of Johannesburg's rental scene.
These trends are important for potential property buyers, as they highlight the growing demand and profitability in the rental market. Understanding these dynamics can help in making informed decisions about property investments.
As the rental market continues to evolve, keeping an eye on these trends can provide valuable insights into future property value and rental income potential.
Sources: BusinessTech, Landlords Association
10) Johannesburg's median property price is now 10% higher than Cape Town's
In 2025, Johannesburg's median property price is now 10% higher than Cape Town's.
For years, Cape Town was famous for its sky-high property prices, especially in luxury areas like Clifton, where homes could sell for as much as R66 million. This focus on luxury sales might have pushed average prices up, but the median price, which shows the market's middle point, tells a different story.
Meanwhile, Johannesburg, nestled in Gauteng, has experienced a more varied spread of property sales across different price brackets. This diversity in sales has contributed to a more balanced growth in the property market, which is likely why the median price has climbed.
In Gauteng, the property market has shown signs of stabilization and growth, which has helped boost the median property price. This trend reflects a healthier market dynamic compared to the luxury-focused Cape Town.
While specific median prices weren't detailed, the general trend in Gauteng suggests that Johannesburg's property market is on a steady rise, outpacing Cape Town's in terms of median price growth.
These shifts in the property market dynamics between the two cities highlight how Johannesburg has become a more attractive option for a wider range of buyers, contributing to its higher median property price compared to Cape Town.
Sources: Bizcommunity, Statista
11) Johannesburg's rental property vacancy rate dropped to 5% in 2024
In 2024, Johannesburg's rental property vacancy rate dropped to 5%.
This shift is part of a broader trend in the Gauteng region, where vacancy rates have been steadily declining. By the end of 2023, residential rents in Gauteng had already increased by 3.6% year-on-year, signaling a stable and strong rental market. This uptick in rent prices reflects the growing demand for housing in the area.
Gauteng's economic appeal is a major draw, attracting people from all over South Africa. This influx is particularly noticeable in northern Sandton and Johannesburg, where security-focused complexes and family homes are in high demand. As more people move in, the demand for rental properties rises, naturally pushing vacancy rates down.
While the Western Cape boasted a low vacancy rate of 2.3% in early 2024, Johannesburg's rental market showed its own strength. Flats in Johannesburg were less vacant compared to the previous year, reinforcing the trend of decreasing vacancy rates. This indicates a robust demand for rental properties in the city.
These factors combined paint a picture of a thriving rental market in Johannesburg. The city's appeal, coupled with regional economic opportunities, continues to drive demand. As a result, vacancy rates have reached a notable low, making it an attractive time for property investment.
Sources: Seeff Blog, Core.ac.uk, Rode Zoho Sites
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12) Over 60% of luxury property buyers in Johannesburg in 2024 were international
In 2024, over 60% of Johannesburg’s luxury property buyers were from outside South Africa.
This surge in international interest was highlighted in the Africa Wealth Report 2024, which noted a growing trend of expats and foreign high-net-worth individuals (HNWIs) snapping up high-end properties in the city. Johannesburg's luxury property market was experiencing a revival, making it a hotspot for global investors.
One major draw for these buyers was the affordability of luxury homes in Johannesburg compared to other major international cities. According to Lew Geffen Sotheby's International Realty, the city offered a unique value proposition, providing luxury at a fraction of the cost found elsewhere, which was a significant factor for international buyers.
Beyond just the price, South Africa's overall allure played a crucial role. The country offered an abundance of luxury properties and a lifestyle that appealed to high-net-worth individuals. This general attraction to South Africa likely contributed to the high percentage of foreign buyers in Johannesburg's luxury market.
Johannesburg's appeal wasn't just about the properties themselves. The city offered a vibrant culture, diverse communities, and a dynamic economy, making it an attractive destination for those looking to invest in a lifestyle as much as in real estate.
With these factors combined, Johannesburg became a prime location for international buyers seeking both value and a rich living experience. The city's luxury market was not just about homes but about offering a lifestyle that resonated with global investors.
Sources: Lew Geffen Sotheby's International Realty, Africa Wealth Report 2024
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.