Pretoria World’s Most Affordable Capital Economist Dawie Roodt Confirms

South Africa’s capital, Pretoria, has been unsurprisingly recognised as the world’s most affordable capital city by an overseas financial services firm, as confirmed by local economist Dawie Roodt. However, Roodt cautioned that this accolade should not be misconstrued as an indication of the country’s overall economic health or growth.

According to the recent findings released by US financial services firm NetCredit, Pretoria emerged as the most affordable capital city after analysing over 800,000 property listings across 73 global capitals and calculating the median house prices for each location. Roodt attributed this outcome primarily to the weakening of the South African rand, stating that the currency’s current state contributes to the observed trend.

NetCredit assessed the affordability of capital cities by considering the average monthly net salary in each location, and Pretoria emerged as the most affordable capital based on this criterion. Carl Coetzee, CEO of BetterBond, explained that this affordability ranking has positively impacted the residential property market in Pretoria, leading to increased house prices within the city. He noted a significant rise of more than 13% in average house prices last year. Still, he emphasised that Pretoria remains accessible for buyers across different price ranges due to its diverse property offerings, including security complexes and estates.

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Coetzee highlighted that Pretoria offers highly desirable leisure and lifestyle options, excellent medical facilities, and outstanding schools, including renowned universities such as the University of Pretoria, the University of South Africa, and the Tshwane University of Technology. He added that the city’s appeal to young homebuyers is promising for the future of Pretoria’s residential property market. According to Property24, nearly one-third (30%) of all homebuyers in Pretoria belong to the 18-35 age group, many of whom are first-time buyers. Coetzee mentioned that the average purchase price for first-time buyers in the Greater Pretoria area during the 12 months leading up to April 2023 was approximately R1.4 million.

The 36-49 age group accounted for just over 38% of homebuyers in the past year, indicating the city’s popularity among families seeking proximity to schools and educational opportunities. Coetzee revealed that the average purchase price for all buyers in the greater Pretoria area, based on bond applications received by BetterBond in the past 12 months, was approximately R1.66 million. He further highlighted the emergence of new developments and apartment complexes catering to the needs of local buyers. In 2021, Lightstone reported that Pretoria had one of the highest percentages of sectional title sales among all South African metros.

Pretoria’s appeal extends beyond affordability and real estate prospects. Many are drawn to the city due to its slower pace of living compared to Johannesburg while still offering a vibrant arts and culture scene, diverse leisure activities, and entertainment options. Additionally, its convenient location allows easy access to nearby holiday destinations such as the Bushveld, Lowveld, KZN, and neighbouring countries. With its combination of affordability, amenities, and recreational opportunities, Pretoria truly encompasses a desirable package for residents and visitors alike.

Source: Local economist not surprised Pretoria named world’s most affordable capital

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Photo: Facebook / @Dawie Roodt