South Africa

Financial Overview

Property Search

Global Statistics

House Prices

Regional Statistics

Aug 22, 2011

South Africa: Excellent yields in major cities

			Last Updated: Aug. 22, 2011
Cape Town - Apartments	COST (US$)		YIELD (p.a.)	PRICE/SQ.M. (US$)
Cape Town - Apartments	TO BUY	MONTHLY RENT	YIELD (p.a.)	TO BUY	MONTHLY RENT
60 sq. m.	206,400	994	5.78%	3,440	16.57
120 sq. m.	512,640	2,466	5.77%	4,272	20.55
220 sq. m.	1,128,600	5,489	5.84%	5,130	24.95
Cape Town - Houses
3 bedroom	1,062,989	n.a.	n.a.	n.a.	n.a.
4 bedroom	1,244,306	n.a.	n.a.	n.a.	n.a.
Johannesburg - Apartments
1 bedroom	87,387	n.a.	n.a.	n.a.	n.a.
2 bedroom	122,985	n.a.	n.a.	n.a.	n.a.
Johannesburg - House
3 bedroom	534,344	3,376	7.58%	n.a.	n.a.
4 bedroom	791,361	6,504	9.86%	n.a.	n.a.
Districts researched Cape Town: Atlantic Seaboard (Bakoven, Bantry Bay, Camps Bay, Clifton, Fresnaye, Green Point, Mouille Point,), Hout Bay, Waterfront, City Bowl Johannesburg: Northern Suburbs ( Dunkeld, Hyde Park, Houghton Estate, Illovo, Inanda, Melrose, Parkhurst, Parktown, Parkview, Sandhurst, Saxonwold and Westcliff Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

South Africa’s house price rises resumed in 2010. By July, prices were up 12% on a year earlier. But the price increases are already slowing, and expected to continue slowing during the remainder of the year.

In Capetown, apartments sell for around US$3,000 to US$4,000 per square metre (sq. m.). We cannot easily determine sq. m. prices for other major cities, because South Africa follows the Anglo-Saxon practice of quoting prices in terms of numbers of bedrooms (regardless of size).

Rental yields seem excellent both in Cape Town and in Johannesburg. It is possible to get returns of over 8% on smaller units in Cape Town, and over 10% in Johannesburg.

Currency volatility is a worry. The South African Rand has appreciated against major currencies over the past few years, but suffered a major collapse 1995-2002, and another period of weakness 2005-2008.

South Africa - more data and information

Comments

Be the first to comment on this article!

Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.