Property is booming in townships

Xolile Bhengu

Xolile Bhengu

Most township property deals are still done between individuals rather than through estate agents. However, this is an exciting market for mortgage providers and other property professionals, considering the average township house increased in value by 39percent in March from the same month last year, the township property price index compiled by risk management firm Lightstone found.

First National Bank property strategist John Loos said the results were a positive reflection of more people's ability to leave home at an earlier age as they became more employable.

He said the next logical move, already evident with the launch of Maponya Mall this week, would be for retailers to move closer to their clients.

"This will be a great benefit for the properties, improvement of the quality of life and for making townships more liveable," he said.

Lightstone used a sample of 1,4million houses in major metropolitan areas for the survey.

The survey also found that at the end of last year 46percent of sellers remained in the township, while 54percent moved to affordable former white areas buying properties between R250000 and R700000.

Banks have also increased their financing of township properties. This year 45percent of the sold properties were found to be bonded.