Langa leads the way … and 75% of first-time buyers in Sandton and Midrand are black
Langa (112 purchases) and Belhar (91 purchases, situated in the Cape Flats) lead the way for first time home buyers in Cape Town in 2020 – suggesting black buyers are increasingly moving into property ownership.
Other suburbs in the top ten included Plumstead, Observatory, Sea Point, Wynberg, Rondebosch and Claremont, all located in the southern suburbs, with Sea Point on the Atlantic seaboard and Ottery on the edge of the southern suburbs making up the balance.
In 2010, Belhar led the first-time buyers table, along with seven other suburbs appearing in both lists. The only newcomers in 2020 were Langa and Ottery, with Delft and Strandfontein Village dropping out.
In Johannesburg, Kensington (60 purchases) directly east of the city centre was the first choice in 2020, up from fifth in 2010. Oakdene (one of five suburbs located south of the city) and Orange Grove (one of four in the northern suburbs) were next.
First time buyers have consistently been drawn to the same suburbs in Durban, with nine appearing in both the 2010 and 2020 top ten lists. Bulwer (80 purchases), located adjacent next to the Durban CBD, was the leading choice in the period January to September 2020.
Other suburbs to feature in both periods include Morningside, Reservoir Hills, Musgrave, Durban Central, Essenwood, Montclair, Newlands East and Umbilo. The new entrant in 2020 was Windermere, which replaced Earlsfield.
In Pretoria, Moreleta Park (147 purchases) is comfortably ahead of the other leading city-based suburbs. Moreleta Park is among the popular suburbs south and east of the Pretoria CBD, which include fellow top ten choices, Faerie Glen and Equestria.
The increased sales in Pretoria could reflect people moving into the city from surrounding rural areas as security concerns mount, changing university lodging rules, many new flats and residential developments are coming on stream, and state schools are plentiful and less expensive than many in Johannesburg. The areas where people are moving to are centrally located, with hospitals, malls and road networks within easy reach.
The impact of Covid-19 and the lockdowns are perhaps evident in the tables below, subject to the backlog being cleared at the Deeds Office. They show total first-time purchases dropping to 2,195 in 2020 from 4,992 in 2010 – a drop of some 55%.
Sandton and Midrand
Some 75% of buyers (where race is recorded) in 2020 in Sandton and Midrand are black, compared to 55% in 2010 (where race is recorded), again underscoring the demographic shift taking place in the residential market.
In Sandton, sales to first-time buyers are evenly spread across the leading five suburbs, Paulshof, Bryanston, Lonehill, Douglasdale and Linbro Park, all of which bar Linbro Park were in the top ten in 2010. The only other new entrant in 2020 is Broadacres, while Edenburg and Beverley dropped out.
In Midrand, 2020, sales to first-time buyers in Midrand Outlying is significantly higher at 25% of the total than other suburbs.
As with purchases in the four main cities, the effect of Covid-19 and the lockdown is still being reviewed as the year closes out and at this stage we show total sales of homes as the tables below indicate: in 2020 a total of 1,619 homes were purchased, just 53% of the 3,016 purchased in 2010. We will be able to assess full Covid impact by early March 2021.