What is happening in Johannesburg Property Market?
Category News
What is happening in Johannesburg Property Market?
Market Momentum & Interest Rates
The South African Reserve Bank's latest 25 bp cut has brought home‑loan rates down to 10.75%-the lowest since Feb 2023-making borrowing more affordable and igniting buyer interest in Johannesburg.
2025 brought easing inflation and a policy environment that's boosting affordability and sparking renewed growth in real estate.
Prices & Yields
Residential prices in Johannesburg saw a ~6% increase in 2024, fueled by post‑election economic confidence.
Rental yields remain strong-especially in the city centre-ranging between 8-10%, outperforming other South African metros.
New builds are becoming costlier due to rising construction costs, bolstering demand and pricing in existing stock markets.
Hot Suburbs & Foreign Interest
Luxury suburbs like Sandton and Bryanston have experienced a surge in activity in early 2025, driven by investor demand and lifestyle preferences.
Favorable exchange rates have made Johannesburg's luxury sector especially attractive to foreign buyers, who are increasingly snapped up in secure, gated estates.
Market Challenges & Opportunities
Despite robust pricing, property transactions are down over 30% in some areas, reflecting economic sluggishness and infrastructure concerns.
However, Johannesburg's status as South Africa's economic powerhouse-hosting 16% of national GDP and continuous urbanization-means rental demand remains high, presenting strong opportunities for investors.
Commercial Outlook
The commercial space is evolving: demand rises in logistics and mixed-use developments, while traditional office environments face pressure from remote work trends.
What does this mean for you as a Buyer, Investor and Seller?
Buyers - With lower rates and reasonable entry prices, now is a strong window to purchase especially in suburbs like Sandton and Bryanston.
Investors - City-centre rentals offer solid yields (8-10%), and luxury estates are increasingly appealing to overseas buyers.
Sellers/Developers - High demand, rising prices, and constrained new-build supply set the scene for favorable sales conditions.
Commercial Landlords - Explore opportunities in logistics hubs and mixed-use spaces due to evolvingtenant preferences and remote-work trends.
Feel free to contact one of our Professional Realtors to secure your investment in the property sector.
www.lifestylepg.co.za
It's A Lifestyle...
Author: Monique Cosgrave
