The gap between Cape Town and Johannesburg’s property markets is widening, with lifestyle and infrastructure challenges weighing heavily on Gauteng’s economic hub, according to property group Chas Everitt.
The company notes that the quality of life in Johannesburg and Pretoria has declined over the past year due to failing transport, electricity and water infrastructure, poor municipal management and persistent crime. This has caused prime property prices in central Sandton to stagnate at around $1,800 per square metre, while Cape Town’s prime property prices have surged over the past five years to reach $5,800 per square metre.
As a result, new residential development in Johannesburg has been largely limited to the conversion of under-utilised office blocks and business parks into rental apartments. In contrast, Cape Town is experiencing a development boom, with hundreds of new, upmarket homes coming onto the market.
However, the group points out that Johannesburg still holds key advantages.
The city offers one of the best climates in the world, significantly lower luxury property prices compared to Cape Town, and remains the base for most of South Africa’s blue-chip companies.
“Johannesburg is increasingly seen by both local and international investors as a launchpad into Africa’s fast-growing markets,” he said. “It continues to meet one of the biggest drivers of relocation – fresh business opportunities – and could retain its status as Africa’s wealthiest city if local authorities deliver on their renewal plans now under way.”
