Soweto records highest annual property sales value in 2023

Soweto, South Africa's largest suburb, has been making headlines in the real estate market with record-breaking sales values in 2023. Esteani Marx, the Head of Real Estate at Lightstone, shared insight into the booming property market in Soweto during an exclusive interview with CNBC Africa. The unique story of Soweto's property market has caught the attention of investors and homebuyers alike, showcasing the potential and growth opportunities in this vibrant community. In 2023, Soweto witnessed a total of 2,200 property transactions, amounting to a staggering value of nearly 900 million. This significant milestone reflects the growing interest and investment in Soweto's residential properties. Despite a decrease in transaction volumes, the market has seen a steady increase in property values, indicating a positive trend in the real estate sector. With approximately 186,000 registered properties in Soweto, the area has experienced remarkable growth since 1994 when there were only 83,000 properties. The majority of properties in Soweto are classified as freehold, with a small percentage falling under estates and sectional titles. The price range of properties in Soweto varies, with most properties priced between 250,000 and one million, with a significant portion falling within the 250,000 to 700,000 range. The demographic of buyers in Soweto has also shifted over the years, with an increasing number of young individuals and pensioners investing in the area. The majority of sales are attributed to individuals below 35 years old and those aged between 36 and 49, signaling a diverse and dynamic real estate market in Soweto. Despite economic challenges in South Africa, Soweto's property market has shown resilience, with consistent price appreciation over the years. While the overall real estate market in the country has faced fluctuations, Soweto has seen growth in property values post-2021, indicating a promising future for investors and homeowners in the area. The sentiment towards selling homes in Soweto remains positive, with various uses and conversions of properties to meet different needs, such as student accommodation and multi-let units. The cultural significance and amenities in Soweto attract buyers and drive demand for properties in the area, contributing to a vibrant and thriving real estate market. In terms of selling time for properties in Soweto, the data varies across different areas and requires further analysis to provide specific insights. Notable areas like Vilakazi Street, known for its historical significance and former Nobel Prize winners' residences, may have unique pricing and demand dynamics that warrant a closer examination. As Soweto continues to evolve and attract a diverse range of buyers, the real estate market in the area holds promise for future growth and development.