Pretoria named the number 1 most affordable capital in the world
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Pretoria has been named the most affordable capital city in the world. The research was done 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, says Carl Coetzee, CEO of BetterBond. "Understandably, its popularity has driven up house prices within the Greater Pretoria area, and we saw an increase of more than 13% in average house prices last year, according to the BetterBond Property Brief (April 2023) - good news for the local economy. Happily, it still remains 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. In addition, 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."
Better yet, it also appeals to young homebuyers, which bodes well in terms of future-proofing the city's residential property market. "Property24 reports that buyers in the 18-35 age group account for nearly one-third - 30% - of all homebuyers in Pretoria. Many of these will be first-time buyers and it's always good to see them getting a foot on the property ladder. BetterBond regional data shows that the average purchase price for first-time buyers in the Greater Pretoria area was almost R1.4 million for the 12 months ending April 2023," says Coetzee.
The 36-49 age group accounted for just over 38% of homebuyers in the past year, according to Property24, suggesting that the city is also popular with families wanting to be close to schools and educational opportunities.
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 R1.66 million.
Many new developments and apartment complexes are coming to market to meet local buyers' needs. In 2021, Lightstone already reported that Pretoria had one of the highest percentages of sectional title sales of all South African metros.
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. Its location also makes it easy to get away for holidays or short breaks to the bushveld, lowveld, KZN, or any of several neighbouring countries. Pretoria really has it all!
Author: Betterbond
