Here are the most affordable cities in South Africa to buy a house

Online job aggregator Adzuna recently released a list of South Africa’s cheapest cities to buy property based on salaries on offer versus residential property prices.

Jesse Green, Adzuna South Africa’s country manager, said the platform used data from Property24 to calculate the average house price for homes on sale in each region.

South African residential properties lost value, when corrected for inflation, for the second year running; the FNB Property Barometer for June showed that property prices increased by only 3.3% year-on-year in May, while the  consumer price index (CPI) inflation stood at 4.5%.

Also read: South African homes keep losing value – and will keep getting cheaper in real terms for at least a couple of months

Green said that despite the real value of properties declining, average salaries had not grown enough to make homes much more affordable than in the past.

The Reserve Bank recently revealed that local salaries only grew by 1% in the past year.

These are the average prices of residential property on sale per city, compared to the average salary offered in each region.

Green said data supplied by Property24 revealed that average residential property prices increased faster than salaries offered across eight cities.

Port Elizabeth is one of the most affordable places to buy residential properties. Prices for properties on sale there grew by 1.5%, compared to a 29% jump in average salaries offered.

Also read: More (mostly rich) South Africans are now getting home loans – here’s why

On the flip side, Green said Cape Town and Johannesburg are the most expensive cities to buy residential properties in South Africa.

Property24 showed that average prices for residential properties on sale in Johannesburg shot up by as much as 68% in a year’s time, while Cape Town residential properties on sale saw price increases of 58%. 

Source: Business Insider South Africa

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