Once neglected, South Africa's township areas are seeing a significant transformation, with residents and investors turning their attention to these communities. The property market in these areas is booming, marking a major shift in demand and investment.
Real estate agents working in townships like Cosmo City and Alexandra have noticed a significant increase in interest, particularly from entrepreneurs eager to tap into local businesses. Data showed a 52 per cent rise in house prices in Soweto between 2013 and 2018, reflecting a growing demand for township living. Recent reports from Lightstone and BetterBond suggest that township properties are now a key focus in the affordable housing market.
Young investors, particularly those aged 30 to 39, are increasingly opting for homes in townships over pricier areas like Midrand, Fourways, and Sandton due to the lower cost of living and easier access. This has created a burgeoning market for affordable properties and second-hand goods, with local shops seeing a rise in demand.
Retail giants are recognising the potential in these areas. The retail company named Shoprite's expansion into townships has been rapid, with hundreds of new stores opening, including its delivery service, Sixty60, in Soweto.
However, rapid growth has not come without challenges. Townships are struggling with overpopulation, traffic congestion, and pressure on infrastructure. Essential services such as electricity and running water are becoming unreliable, which poses a concern for residents and businesses. Despite these challenges, the township property market thrives, attracting first-time buyers and seasoned investors looking to capitalise on the region's potential.
