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A shortage of suitable stock – especially of freestanding homes priced below R500 000 – is the only factor holding back Soweto's property market at the moment, according to Khosi Sibiya and Phindile Mphahlele, managing directors at Seeff's new branch in Soweto.
They say that Soweto is sometimes still perceived as an area that offers mainly low-cost housing, but this is not the case anymore.
"Soweto has 37 suburbs and there are some truly remarkable property opportunities in many of them. Additionally, there is still a lot of opportunity for development which means that property values in Soweto are continuously on the rise," says Sibiya.
Soweto is home to around 40% of the total Johannesburg population, and the suburbs within Soweto all have different demographics.
Homes and businesses
Increased house prices in Soweto demonstrate an influx of middle-class residents and affordable property prices. Easy access to the Johannesburg City Centre also adds to the desirability to live here.
Many entrepreneurial businesses have also taken off in Soweto and have bettered the lifestyle of many residents. This, in turn, has caused property prices to rise.
Sibiya says some residents who bought properties in Pimville for less than R200 000 around 20 years ago, for example, are now selling them for more than R700 000, with some homes even bordering on the R1m price range.
Tourist opportunities
"Soweto has also become a big tourist attraction, and with this property values have increased year-on-year. Completed developments, the upgraded road infrastructure, the Rea Vaya bus system and new commercial infrastructures have all added to making Soweto a place where people want to invest," says Sibiya.
The agents have even witnessed a trend where many middle-aged buyers who started off living in Soweto have since left the area to buy property elsewhere, but now want to return to the property market here.
Younger buyers are favouring more of the upmarket suburbs like Diepkloof extension 1 and Orlando West, where property can cost upwards of R1m.
The average price range for buyers that are looking to break into the Soweto property market is between R490 000 for a two-bedroom, one-bathroom unit and R690 000 for a unit with three bedrooms, two bathrooms and a carport.
Sibiya says the most prominent townships to keep an eye on with regard to property in Soweto include Orlando West, Pimville, Jabulani and Protea Glen.
