Should you buy property in Johannesburg now?

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

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Johannesburg. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The African Investor, we explore the South African real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Johannesburg, Cape Town, and Durban. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are property prices doing in Johannesburg right now compared to last year and the past five years?

Johannesburg property prices have risen approximately 6% over the past year, reaching an average of ZAR 1.5 million as of September 2025.

This represents a significant turnaround from the stagnant period between 2018-2024, when prices remained flat or even declined in many areas. The current growth marks the strongest annual performance in nearly seven years.

Over the past five years, certain strategic areas have seen remarkable appreciation of 40-45%, particularly in growth corridors that benefited from infrastructure upgrades and urban renewal projects. However, this growth has been highly localized, with traditional CBD areas and some central neighborhoods experiencing slower growth or declines.

The recovery is attributed to improved economic sentiment, infrastructure investments like the Gautrain expansion, and renewed interest in urban living among young professionals and investors.

It's something we develop in our South Africa property pack.

Which areas of Johannesburg are showing the strongest price growth and which ones are declining?

The strongest price growth is concentrated in four key areas: Midrand, Braamfontein, Randburg, and Fourways, each recording significant appreciation due to infrastructure improvements and lifestyle upgrades.

Midrand leads the pack with consistent growth driven by its strategic location between Johannesburg and Pretoria, excellent highway access, and new commercial developments. Braamfontein has emerged as a student and young professional hub, benefiting from urban renewal and proximity to universities.

Randburg continues attracting middle-class families with its established suburbs, good schools, and shopping centers, while Fourways appeals to affluent buyers seeking modern estates and lifestyle amenities.

Areas experiencing slower growth or declines include sections of the traditional CBD, where commercial flight and security concerns persist, and certain older central neighborhoods that haven't benefited from renewal initiatives.

Outer areas with poor infrastructure or limited access to economic opportunities also lag behind the growth corridors.

How do short-term rental yields look across different neighborhoods?

Johannesburg offers some of the highest rental yields in South Africa, ranging from 7% to 16% gross yields depending on location and property type.

Inner city units and affordable suburbs can produce up to 16% gross yields, making them the highest in the country. These areas attract budget-conscious tenants, including students and young professionals starting their careers.

Premium areas like Sandton and Houghton offer more moderate but still attractive yields of 8-12%, though they require higher initial investments. These yields reflect the strong demand from corporate executives and expatriate workers.

Townhouses and sectional title properties generally outperform large freestanding homes in terms of rental returns, as they're easier to maintain and attract a broader tenant pool.

The strong rental market is supported by the fact that 36% of Johannesburg households rent rather than own, creating consistent demand across all price segments.

What's the outlook for rental demand in the medium term, especially in central versus suburban areas?

Rental demand in Johannesburg is expected to remain robust over the next 1-3 years, with vacancy rates stabilizing at 8-12% and consistent growth anticipated for well-located properties.

Central nodes like Sandton, Rosebank, and Braamfontein will likely see the strongest rental demand growth, driven by young professionals seeking proximity to work and entertainment. Urban renewal projects continue making these areas more attractive and secure.

Suburban areas, particularly upmarket suburbs like Randburg and Fourways, will maintain strong appeal for families and long-term tenants seeking security, space, and access to quality schools.

The demand for secure, low-maintenance apartments and townhouses in gated complexes is expected to outpace demand for traditional freestanding homes. This trend reflects changing lifestyle preferences and security concerns.

Student accommodation near universities remains a specialized but highly profitable niche, with consistent demand from local and international students.

Are there specific property types—apartments, townhouses, or freestanding homes—that are performing better right now?

Apartments and townhouses are currently the best-performing property types in Johannesburg, driven by strong demand for secure, low-maintenance living options.

Sectional title apartments in secure complexes are particularly popular among young professionals, expatriates, and investors. They offer the best liquidity, shortest selling times, and most consistent rental demand.

Townhouses strike an ideal balance between space and maintenance, attracting small families and professionals who want more room than an apartment but less upkeep than a freestanding home. They typically generate strong rental returns and sell relatively quickly.

Freestanding homes in premium lifestyle estates still retain appeal among affluent buyers seeking space and exclusivity, but they face longer selling times and greater price negotiation pressure.

Entry-level and mid-market sectional title properties are proving most resilient and marketable across all market conditions.

What is the typical time it takes to resell a property in Johannesburg depending on the area and price bracket?

The average resale time for properties across Johannesburg is 97 days as of September 2025, but this varies significantly by area and price bracket.

Value-driven areas like Roodepoort show the fastest turnover at 52-57 days, benefiting from high buyer demand and accessible pricing. These properties often attract first-time buyers and investors with limited budgets.

Mid-market properties in established suburbs typically sell within 70-90 days, while luxury areas like Bryanston and Sandton can take 70-108 days depending on pricing and market conditions.

Super-luxury homes above ZAR 5 million face the longest selling periods, often exceeding 120 days, as they target a much smaller buyer pool with specific requirements.

Entry-level and mid-market properties generally sell faster due to broader buyer appeal, better financing accessibility, and higher transaction volumes in these segments.

How affordable is financing at the moment, and how do current mortgage rates affect monthly repayments compared to a year ago?

Financing conditions have improved slightly in 2025, with South Africa's prime lending rate at 10.5% as of August 2025, down 0.25 percentage points from the previous year.

The repo rate stands at 7%, creating a more favorable borrowing environment than in recent years. This modest decrease translates to lower monthly mortgage repayments and reduced qualification barriers for buyers.

For a ZAR 1.5 million property with a 20% deposit, the monthly repayment would be approximately ZAR 12,500, compared to ZAR 13,000 a year ago. This ZAR 500 monthly saving makes homeownership more accessible.

Banks are showing increased willingness to lend, particularly for entry-level and mid-market properties in established areas with good security and infrastructure.

The improved financing environment is supporting increased buyer activity and market stability, though rates remain elevated compared to historical lows.

What are the expected long-term economic and population trends that could influence property values in Johannesburg?

Johannesburg is projected to maintain positive economic and population growth over the long term, supported by its position as South Africa's primary business and financial hub.

Ongoing urbanization trends will continue driving population growth, with rural-to-urban migration creating sustained housing demand across all segments. The city's role as the economic engine of South Africa ensures continued job creation and economic activity.

Major infrastructure investments, particularly the Gautrain expansion and road improvements, will likely boost property values in connected areas and create new growth corridors.

Property price growth of 1.8-4% annually is anticipated over the long term, with strategic suburbs positioned along transport corridors expected to see outsized appreciation.

It's something we develop in our South Africa property pack.

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 do entry-level, mid-market, and luxury properties compare in terms of price appreciation and rental potential?

Entry-level properties (under ZAR 1 million) are experiencing 4-6% annual price growth with rental yields of 9-16%, offering the highest yields but slower capital appreciation in weaker nodes.

Property Segment	Annual Price Growth	Typical Rental Yield	Risk Profile
Entry-level	4-6%	9-16%	High rental demand, area-dependent appreciation
Mid-market	6-8%	10-13%	Best balance of demand, liquidity, and yield
Luxury	2-4%	8-11%	Slower sales, potential discounts needed
Student housing	5-7%	12-16%	Specialized market, consistent demand
Lifestyle estates	3-5%	7-10%	Family market, long-term appreciation

Mid-market properties (ZAR 1-3 million) show the best overall performance with 6-8% price growth and 10-13% yields, offering optimal balance of rental demand, liquidity, and appreciation potential.

Luxury properties (above ZAR 3 million) experience slower 2-4% growth and 8-11% yields but may require longer selling periods and price negotiations, though they offer potential for strong long-term capital growth in premium areas.

What risks—political, economic, or security-related—should buyers consider before committing capital now?

Political uncertainty remains a significant risk factor, with policy changes, land reform debates, and governance challenges potentially affecting property values and investor confidence.

1. **Economic risks**: Slow GDP growth, high unemployment, and currency volatility can impact property demand and affordability2. **Security concerns**: Crime rates in certain areas, particularly around the CBD and older neighborhoods, continue deterring buyers and tenants3. **Infrastructure decay**: Poor municipal services, load-shedding, and maintenance backlogs in some areas can negatively impact property values4. **Regulatory changes**: Potential changes to property taxes, foreign ownership rules, or rental regulations could affect returns5. **Energy security**: Ongoing electricity supply issues and high utility costs add operational challenges for property owners

These risks are most pronounced in areas outside prime nodes and affect lower-income segments disproportionately.

Buyers should focus on well-governed areas with good infrastructure and security to mitigate these risks.

If you want to buy for your own use, which neighborhoods balance lifestyle quality with long-term value retention?

Randburg offers an excellent balance of lifestyle amenities, security, established infrastructure, and consistent property value growth, making it ideal for long-term owner-occupiers.

Bryanston provides upmarket living with excellent schools, shopping centers, and security estates, while maintaining strong long-term capital appreciation potential due to its proximity to Sandton.

Fourways appeals to families seeking modern developments, lifestyle centers, and secure estates, with ongoing infrastructure improvements supporting future value growth.

Specific pockets of Midrand offer good value for money with improving infrastructure and accessibility, particularly areas near the Gautrain route.

Parkhurst and Douglasdale blend vibrant community atmosphere with stable growth prospects, offering character homes and trendy amenities while retaining investment appeal.

If you're buying as an investor, where should you position yourself now in terms of budget, property type, and location for either rental income or future resale?

Investors should focus on mid-market apartments or townhouses in the ZAR 1-2 million range within growth corridors for optimal risk-adjusted returns.

1. **Prime investment locations**: Midrand, Fourways, Randburg, and student-favored areas like Braamfontein offer the best combination of rental income and capital growth potential2. **Optimal property types**: Sectional title apartments and townhouses in secure complexes provide the best liquidity and rental returns3. **Budget allocation**: Target ZAR 1-2 million properties for maximum market appeal and financing accessibility4. **Diversification strategy**: Consider exposure across high-yield areas and infrastructural nodes to balance income and growth5. **Asset class focus**: Prioritize sectional title schemes in secure developments as the most resilient and marketable investments

Student accommodation near universities offers specialized high-yield opportunities for experienced investors, while entry-level properties in improving areas can provide excellent cash flow.

It's something we develop in our South Africa property pack.

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.

Sources

1. Johannesburg Property Market Trends
2. Average Rent Johannesburg
3. Best Areas Buy Property Johannesburg
4. Global Property Guide - South Africa Price History
5. Johannesburg Which Area
6. IOL - Economic Impact on Property Transactions
7. Estate Agent Power - Best Rental Yields
8. Global Property Guide - Rental Yields
9. Private Property - Interest Rates August 2025
10. Lightstone Property Newsletter