The return to prominence for Bloemfontein centres on one key factor. The Free State city is currently the most affordable South African city to live in. As such, any first-time buyers looking to dip their toe in the property market could do a lot worse than Bloemfontein and greater Free State. No wonder then it has the highest ratios of first-time home buyers in South Africa.
According to BusinessTech, sales are up by 19% and rentals up by 8% year-on-year in the judicial capital of the country. And most residential transactions are taking place in the R500 000 to R1 million range. 7% of buyers are under 35 years of age, and 42% are under 50 years old. An impressive figure when you see what the average house prices are elsewhere in the country. And how those high prices are systematically keeping first-time buyers out …
BLOEMFONTEIN ON THE RISE
Below are the average house prices across all nine provinces (highest to lowest), according to African Investor:
- Western Cape: R1.8 million. Driven by the province’s lifestyle appeal, superior municipal services, and strong tourism.
- Gauteng: R1.3 million. The economic heartland of the country and benefits from strong employment opportunities.
- KwaZulu-Natal: R1.1 million. The province shows moderate pricing, even though it benefits from coastal location and industrial activity.
- Eastern Cape, Northern Cape, Limpopo and Mpumalanga: R900 000 (estimated and all broadly the same).
- Free State: R800 000. Currently the most affordable entry point for all provinces.
BIG CITY, SMALL TOWN
Nevertheless, Bloemfontein and the Free State represents excellent value for money. As such there’s been a 10% rise in mortgage loan applications this year. And 48% of the market are first-time buyers. Likewise, the big-city, small-town vibe shines through in its lack of traffic congestion and laid-back, community-first lifestyle. It attracts those trying to escape the hustle and bustle of major urban metros.
As such, the diversity of Bloemfontein brings together everyone from young families to retirees, students, professionals and public-sector employees. Better still, planned infrastructure upgrades and new residential developments mark a bright future for Bloemfontein. It is the judicial capital of South African and home to the Supreme Court of Appeal. There is also a strong academic tradition, with prestigious schools like Grey College to name but one.
But what do you think? Is Bloemfontein and the Free State on the way up again? Be sure to let us know in the comments section below …
