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 evolving                                                   tenant preferences and remote-work trends.

Feel free to contact one of our Professional Realtors to secure your investment in the property sector.

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