Research by property analytics group Lightstone shows the value of the house you can afford on your monthly salary in neighbourhoods across South Africa.
The group’s research looked at properties across the country and calculated what a home buyer would have to earn per month to pay off a 20 year mortgage, assuming they use 30% of their monthly gross to fund it.
According to Lightstone, the median property value was used “as it eliminates extreme values which can influence the price within a suburb, and it gives a good representation of the typical house value in the suburb as a whole”.
Looking at south Africa as a whole, the median value for a property in the Western Cape is R680,000, the highest out of all of the provinces, and one which would require a monthly salary of R22,600.
The Eastern Cape is the province with the lowest median value of a property (at R380,000) requiring a salary of R12,600.
To afford a property in Gauteng where the median value is R620,000, you’d typically need a salary of R20,600, Lightstone said.
“Comparing median values of properties on a provincial level and the salaries required, there isn’t a massive difference in numbers. What about when you take it one step further and analyse suburbs and the salary needed to purchase within them?”
“This is where the numbers change – substantially,” the group said.
To afford a luxury beach property with a median value range of R11,700,000 in Llandudno, you’d need a monthly salary of R389,400.
A property of R7,200,000 within the coastal estate of Zimbali would require a salary of at least R239,600, and a property of around R8,350,000 in De Zalze Golf Estate would require a salary of R277,900.
The following table shows what monthly salary you would have to earn to afford houses in South Africa – and which suburbs typically align with those values.
|Gross monthly salary||Home value*||Typical suburbs in SA|
|R327 800||R9 850 000||Dunkeld (GP), Constantia (EC)|
|R213 000||R6 400 000||Fresnaye (WC), Linksfield North (GP), Mooikloof (GP)|
|R106 500||R3 200 000||Parkhurst (GP), Tokai (WC), Umhlanga Rocks (KZN)|
|R89 900||R2 700 000||Woodmead (GP), Bryanston (GP), Meadowridge (WC)|
|R66 600||R2 000 000||Godons Bay (WC), Hazelwood (GP), Umdloti Beach (KZN)|
|R58 200||R1 750 000||Blairgowrie (GP), Pinehurst (WC), Glen Hills (KZN)|
|R49 900||R1 500 000||Lonehill (GP), Durbanville (WC), Waterfall (KZN)|
|R41 600||R1 250 000||Parkhill (GP), Tableview (WC), Kensington (GP)|
|R33 300||R1 000 000||Doornpoort (GP), Escombe (KZN), Swellendam (WC)|
|R23 300||R700 000||Krugersdorp West (GP), Lancaster Hill (KZN), Grabouw (WC)|
|R16 600||R500 000||Parow Central (WC), Regier Park (GP), Shastri (KZN)|
|R10 000||R300 000||Yeoville (GP), Umlazi (KZN), Eastridge (WC)|
|R6 300||R190 000||Hillbrow (GP), Wasbank (KZN), Khayelitsha (WC)|
*Financed over 20 years at 30%
Here are a few examples of homes in the price brackets mentioned:
R9.9 million home in Dunkeld
Needed gross salary: R327,800 per month
R2.6 million home in Woodmead
Needed gross salary: R89,900 per month
R1.49 million home in Durbanville
Needed gross salary: R49,300 per month
R930,000 home in Escombe
Needed gross salary: R33,300 per month
R275,000 home in Khayelitsha
Needed gross salary: R10,000 per month
Source: Business Tech