What a R3 Million House Looks Like in South Africa - Joburg vs Cape Town, Pretoria, Gqeberha

Carl Coetzee, the CEO of BetterBond says that semigration is here to stay in South Africa, with more people looking to branch out across the country in pursuit of a better lifestyle or more work opportunities.

Coetzee said that despite recent interest rate hikes having a negative effect on affordability, the residential property market, in general, is resilient.

According to Coetzee, real estate analysis firm Lightstone has reported a significant relocation of buyers aged 46 and upwards who can afford to make a move to a new city or province, particularly the Western Cape.

"Semigration numbers are up to 35% for the past year, from 31% in 2020, with most of the people moving to be between the ages of 49 and 64. Buyers in the 36 to 49 age group making lifestyle changes also opt to relocate," noted the CEO.

"Interestingly, we also see a partial return of buyers, particularly at the upper end of the market, to parts of Gauteng. Many of these settle in estates that offer security and an appealing lifestyle."

On 26 January, the South African Reserve Bank (SARB) announced a 25 basis point hike, taking the current prime lending rate to 10.75%.

In turn, this has made it more expensive for average South Africans to finance a house by paying off a monthly bond.

If you were, for example, wanting to purchase an R3 million home in South Africa and you took out a 20-year bond equivalent to the value of the property - you would have to pay R30,457 a month to settle it.

BusinessTech looked at what R3 million gets you in major hotspots across South Africa:

Johannesburg
2 Bedroom House for Sale in Parkhurst - R2,999,000

Cape Town
2 Bedroom House for Sale in Kenilworth - R2,950,000

Pretoria
3 Bedroom House for Sale in Six Fountains Residential Estate - R2,925,000

Gqeberha
3 Bedroom House for Sale in Humewood - R2,999,000