4 Real Estate Investment Hotspots in South Africa
Updated: Dec 30, 2020
Now is the time to invest in real estate. The proof is overwhelming. Last week, Realtor.com’s Weekly Housing Market Update reported that:
Median listing prices have seen double-digit growth for the last 17 consecutive weeks. Last week, they grew 13.5% over this time last year.
Houses are selling 14 days faster now than they were this time last year.
New listings decreased 7%
What does this mean? That it’s a real estate investor’s time to shine! House prices are rising and they are selling faster, which means there is an increased buyer demand. However, there are less new listings which means there is an opportunity for investors to make moves matching waiting buyers to new properties.
But where should you invest? This is the question every real estate investor is grappling with right now and luckily, we have the answers. In this article, we analysed TPN Credit Bureau’s Q3 Vacancy Survey and their Q1 and Q3 Residential Rental Monitor Reports. TPN is the only South African credit bureau that specialises in the property market.
We pulled data from these reports to find the top 4 real estate investment hotspots in South Africa for 2021:
We are so happy that Gauteng made the list as one of the top real estate investment hotspots in South Africa- but we’re not surprised. Gauteng is our home, but it’s also where we have been investing for years, so we know that it’s rich with opportunities for new investors.
The country’s rental market and good standing rates took a hit in Q2 because of COVID-19, but Gauteng is one of the only provinces that saw an improvement in good standing rates in Q3. Their rates rose from 71.1% to 71.85%. While Gauteng’s good standing rates are still sitting below other provinces, their rates are rising while provinces with higher rates- namely the Western Cape- are slightly declining.
North Coast of Kwazulu Natal
The north coast of KZN is a fantastic place to invest right now, according to both BusinessTech and TPN.
According to TPN’s Vacancy Survey in Q3 of 2020, KZN has one of the strongest rental markets with a score of 46. The national average is 41 and while COVID-19 created weaker rental markets in most provinces, KZN’s has remained steady since Q2.
Additionally, KZN’s good standing rate improved in Q3 jumping from 70.83% in Q2 to 73.55% this quarter.