The Soweto property market is booming, and in the buyers’ market we’re currently experiencing, you could pick up a sweet property deal in the suburb.
Symbolic Soweto
What was once a sprawling township has become a suburb that’s home to highly in demand properties and homes. Soweto, an urban area that borders the City of Johannesburg to the south, was so named as an abbreviation for “South Western Townships”. But Soweto is no longer a township per se, and is quickly coming into its own as a fully fledged suburban area.
Soweto Property Market
The property pundits of South Africa had long predicted that Soweto’s day would come, where buyers and sellers would be set to contest for space and houses within the area. In fact, our Private Property team predicted it back in 2006, when we set up a satellite office in the area, to cater for increased interest in property around the neighbourhood. Our predictions were far from wrong; but even our experts couldn’t have predicted just how quickly demand would grow for homes within Soweto, nor how much attention the City of Johannesburg would devote towards upgrading the area.
Sweet Property Deals in Soweto
Building on this year’s first Budget Speech for 2020, our team predicts that the Soweto property market is in for further expansion. With the government having announced that all sales for properties that hit under the R1 million mark due to attract no transfer duties, and eager public interest having already existed in buying property in Soweto, the suburb is primed for becoming one of South Africa’s most in-demand suburbs.
The Busiest Property Market
Soweto presents the perfect South African example for the affordable housing market. Properties that attract a selling price of R950000 or less fall within the band of the busiest sector of the South African property market: we’ll give you two guesses what the average selling price for properties in Soweto ranks in at, and the first guess doesn’t count. Conversely, however, the sheer demand for homes in Soweto has led to escalating property prices within the suburb, bucking the common trend for a buyer’s market.
Space At A Premium
You may be mistaken to believe that Soweto is a mass, sprawling suburb, but it’s actually made up of 37 smaller suburbs. As an emerging middle class population, matched with a significant buzz of business growing with Soweto, it’s no surprise that demand for space in Soweto is escalating. Moreover, as space for developing freestanding homes runs low in Soweto, the development of suburban complexes, townhouses, duplexes, and apartments is full steam ahead.
Soweto Investment Opportunities
But, as the Soweto property market booms, interested buyers and keen Soweto-residents-to-be should also consider the lifestyle that’s tied into living in Soweto. Now home to several popular shopping malls, and a burgeoning small business scene, Soweto has transformed from a sprawling township, and now leans closer towards a busy cosmopolitan suburb. Soweto is home to more than forty percent of the City of Johannesburg’s population, and while interest in buying property in Soweto is peaking, the Soweto rental market is reflectively growing too. Similarly, however, the hotel, Bed & Breakfast, and holiday accommodation market in Soweto is also growing. If I were an eagle-eyed property investor looking to make a significant return within the coming years, I suspect my money would land somewhere on a property in Soweto.
Living In Soweto
The Soweto lifestyle has become fast-paced and urbanised, and you don’t need to go far to be entertained, educated, or pursue your career. A number of private schools have opened their doors within Soweto during the past few years, and that’s further attracted middle class families towards living in or around Soweto’s suburbs. In particular, Protea Glen is undergoing massive development, as demand for educational, recreational, and residential facilities abounds. When you choose to invest in the Soweto property market, or make this part of Johannesburg your home, you can expect:
- Easy access to the Johannesburg city centre, as major transport routes and amenities are geared towards supporting large-scale daily commuting in and out of Soweto.
- Several history lessons, as Soweto’s cultural and historical significance for South Africa cannot be underestimated, nor ignored. Several museums, art galleries and cultural hubs can be found within Soweto.
- Shopping opportunities for every budget. You’ll find the full range of retail dreams come true in and around Soweto. Covering the full spectrum - from high end boutiques, to bulk cash and carry stores, and everything in-between - Soweto’s shopping malls are bustling hubs of retail activity.
- A never-ending nightlife. Bars, pubs, restaurants, live music venues, and more, abound across Soweto, with some surprising additions too.
- Tourist spots and sightseeing opportunities. Whether they’re accessible via a tour bus, by bicycle, or by foot, Soweto’s tourist attractions are growing by the day, both in number and size. The guided tour industry in Soweto has never been busier!
Buying your Soweto home
What can you expect when you elect to settle down in Soweto? The range of properties available to purchase in Soweto cuts across all size dwellings and budgets (Yes, I did indeed find a 22-room mansion for sale in Soweto!) so you could find the right property within your price range. And, when compared with other in-demand regions of South Africa (I’m looking at you, Cape Town!) the Soweto property market remains, very much, attainable for the average South African. In fact, the least expensive property in Soweto that I found for sale this week is still larger, far more pleasant to live in, and less than a quarter of the price than the infamous Clifton parking bay, that eventually sold for R1.25 million in 2019.
Soweto Ticks All The Boxes
Whether it’s finding a sweet Soweto rental, or putting down an offer to purchase on one of Soweto’s many affordable homes, this area of Johannesburg must be on your list for your next property investment. For more advice and insights on where to settle your savings next, or to find out more about your next big property dream, visit our Advice Centre.