Jonathan Kohler
Landsdowne Property Group
Founder and CEO
After more than a decade of sluggish growth, Johannesburg’s residential property market is showing promising signs of recovery, signalling the possible bottom of the cycle.
According to Landsdowne Property Group, one of South Africa’s largest residential real estate agencies and managers – this renewed activity presents a golden opportunity for investors and first-time buyers alike. With property prices at multi-year lows and rental demand holding strong, South Africa’s economic powerhouse is becoming an attractive destination for savvy buyers looking to capitalise on value-driven opportunities.
Buyers’ market: Prices have hit rock bottom
Property prices in Johannesburg have stagnated for over a decade, weighed down by concerns over infrastructure, safety, and semigration trends. However, the same factors that suppressed growth have now created a market ripe for buyers seeking long-term value.
“We believe Johannesburg has officially reached the bottom of the cycle,” says Jonathan Kohler, Founder and CEO of Landsdowne Property Group.
“This means buyers and investors can secure properties at 2007 price levels—a rare opportunity for those seeking strong rental income or long-term capital appreciation.”
While lifestyle estates remain popular due to their security appeal, freehold homes in well-located suburbs are emerging as attractive alternatives, offering exceptional value in a buyer-friendly market.
Rental yields among the best in South Africa
Despite its reputation as a challenging market, Johannesburg continues to deliver some of the highest rental yields in the country. Investors in well-placed properties can expect net rental returns of around 9%, with certain high-demand areas surpassing 10%.
“Suburbs like Braamfontein and Newtown consistently achieve yields above 10%, driven by demand from students and young professionals,” notes Kohler.
Other thriving rental hotspots include Paulshof, Sunninghill, Randburg, Fourways, and Midrand, where strong tenant demand ensures stable rental income for landlords.
Fourways, a northern suburb of Johannesburg, is a clear example of value in a down cycle. One-bedroom apartments in established estates start at around R600,000, with rental yields of between 9%-11% – thanks to strong tenant demand and relatively low purchase prices.
By contrast, Blouberg in Cape Town offers a very different picture. A similar one-bedroom apartment starts at about R1.4 million, with rental yields typically lower, between 5%-7%. Sea views or beachfront access can push entry-level prices well beyond R2 million.
“While Cape Town may promise coastal charm and long-term capital growth, Fourways shows where the smart money might go in a cooling market: solid returns at a lower cost of entry,” said Kohler.
Affordability remains Johannesburg’s biggest drawcard
Compared to Cape Town and other metros, Johannesburg offers significantly more affordable property options, making it one of the best places for entry-level buyers to secure a foothold in the market.
Midrand & Boksburg – One-bedroom apartments available for under R700, 000.
Johannesburg South – Spacious freestanding homes for under R2 million.
Bedfordview & Edenvale – Diverse options from starter apartments to luxury homes.
Malvern & Kensington – Renewed interest in character-rich freestanding homes.
West Rand (Roodepoort & Krugersdorp) – Affordable family homes in well-established communities.
“Many areas still offer incredible value, particularly where infrastructure developments are set to enhance livability,” Kohler adds.
Market recovery signals are emerging
Johannesburg’s residential sector has struggled with weak capital appreciation in recent years, but early signs of recovery suggest a shift could be underway.
Kohler however cautions that certain suburbs are already seeing modest price growth, and with interest rates projected to decrease, a surge in market activity should be anticipated. Kohler believes that the window to buy at current price levels may not stay open for long.
Lifestyle changes boosting demand for secure housing
Another key driver of Johannesburg’s market resurgence is the growing preference for secure, low maintenance living in sectional title complexes. The “lock-up-and-go” lifestyle has strengthened demand for townhouses and apartments in key urban nodes.
“Security and convenience remain top priorities, leading to steady demand in areas with strong transport links, reputable schools, and access to business hubs,” says Kohler.
With rental demand outpacing supply in many parts of the city, competitive purchase prices, and the first indications of a recovery in over a decade, Johannesburg’s property market may be entering a new cycle – one that favours bold, strategic buyers.
“This isn’t about chasing hype – it’s about recognizing value. And right now, Johannesburg offers exactly that,” Kohler concludes.