A shortage of affordable housing from both a rental and sales perspective is a reality in South Africa. The average selling price of properties registered in the Deeds Office in 2021 so far is R990 000.
Michelle Dickens of TPN reports that 50% of renters are in the R7 000 - R12 000 per month bracket. Taking this into account, there is going to be an ongoing demand for affordable housing to be built.
In 2022, affordable properties will still see good growth despite job insecurity, poor credit profiles and the increasing cost of living.
A correction is due, but it’s expected to be mild, adds Just Property CEO Paul Stevens.