Guest piece by Carl Coetzee, CEO of bond originator, Better Bond
Pretoria has been named the most affordable capital city in the world, according to research conducted by US financial services firm, NetCredit. They analysed more than 800,000 property listings for 73 global capitals and calculated the median house price for each. They used the average monthly net salary for each city to calculate affordability, and Pretoria came out tops.
This explains, in part, why residential property in the Jacaranda City has been going through a bit of a purple patch.
Its popularity has driven up house prices within the greater Pretoria area. There was an increase of more than 13% in average house prices last year, according to the BetterBond Property Brief for April 2023. This was good news for the local economy. It is one of the most accessible South African cities for buyers across all price bands because it offers a wide selection of property types, including security complexes and estates. It boasts highly desirable leisure and lifestyle options, outstanding medical facilities, excellent schools, and first-class tertiary education, including the University of Pretoria, University of South Africa and the Tshwane University of Technology.
It appeals to young homebuyers, which bodes well in terms of future-proofing the city’s residential property market.
People aged between 18 and 35 account for 30% of all homebuyers in Pretoria. Many of these are first-time buyers.
BetterBond regional data shows that the average purchase price for first-time buyers in the greater Pretoria area was almost R1.4m for the 12 months ending April 2023.
The 36 to 49 age group accounted for just over 38% of homebuyers in the past year.
If we look at all buyers who applied for a bond with BetterBond for the past 12 months, the average purchase price in the greater Pretoria area was R1.66m.
As the seat of South Africa’s executive branch of government and therefore many government departments, as well as hosting numerous foreign embassies and consulates, many parts of Pretoria are perceived to provide peace for residents in and around these areas, who benefit from improved security measures.
To many, Pretoria also appeals because it offers a slower pace of living compared with Johannesburg, while still providing plenty by way of arts and culture, leisure and entertainment.