The property market in Soweto, South Africa’s largest township, is booming, and a recent record-breaking listing of a luxury home there is attracting all kinds of media attention.
An area landmark, the home of the late Dr. Johnny Mosendane is on the market for 3 million rand ($235,527 US).
With five bedrooms and a five-car garage, it’s thought to be the highest-ever listing price for a Soweto house. The family home in Rockville was designed by renowned architects Michael Sutton and David Walker in 1979, and has won numerous architectural awards, according to TheSowetan.
The average home in Soweto sells for 300,000 rand ($23,421), said Trish Luthuli of Pam Golding Properties in Gauteng, in a News24Wire report. There is a strong demand for homes up to 750,000 rand ($58,591).
But more expensive homes in the 1.5 million-to-2 million-rand range ($117,191 to $156,254) are also selling. Many residents in that price range prefer the colorful vibe of Soweto to the Johannesburg suburbs, Luthuli told TheSowetan.
SABC reported that the record listing was giving luster to the community.
A headline on CNBC said, “Soweto will be the place to buy property.”
Mosedane died in 2014 and his widow, Nomusa, 70, said she’s selling because the house is too big for her and she’s afraid to live there alone. TheSowetan reports she was the victim of a robbery.
The house is one of the most valuable ever to go on the market in the area, and it has no comparables in the area, Luthuli said.
“It is a most remarkable all-brick design, very much in the Michael Sutton mould, and there is certainly nothing comparble to it in the Soweto area, or indeed in Johannesburg,” she said.
Some of the features of the 1,375-square-meter house (14,800-square-feet) include a fireplace, barrel-vaulted ceiling, sky roofs, fireplace, pool and expansive gardens.
The Soweto property market is one of the most dynamic in Gauteng, offering affordability and value for money, News24Wire reports. There’s a strong sense of community and an appreciation for its rich cultural heritage.
South Africa’s central bank raised its main interest rate in July by a quarter of a percentage point to 6 percent, WSJ reported. The bank raised rates twice in 2014.
The rate hike and increased costs of running a home are expected to have a dampening effect on the area’s housing market, Luthuli told News24Wire.
“However, with increasing urbanisation and a growing black middle class, homes across all price brackets in Soweto are likely to remain in demand and represent a sound investment,” she said. “The rental market in the area is also substantial and remains strong.”
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