property in SA

The Property Practitioners Act: Image via Unsplash

SA fourth on list of affordable countries to purchase property in the world

‘I can’t even afford a piece of an empty plot, never mind a property with a house on it,’ wrote on local responding to the study.

property in SA

The Property Practitioners Act: Image via Unsplash

While many South Africans have complained about how difficult it is to become property owners, a study has found that the country is one of the most affordable places in the world to buy property. The study that was conducted by Compare the Market, found that SA is the fourth most affordable country to buy property while Turkey took the top spot as the cheapest country for those who would like to have a property of their own.

Locals have shared their thoughts on this study and don’t seem to agree.

SA is the fourth cheapest country in the world to buy property, study shows

The fact that South Africa appears at number four on the top 10 list of most affordable countries to buy property should be good news for South Africans but in reality, the thought of buying property is a distant dream for many.

Compare the Market recently did a global study on which countries have the most affordable property markets by looking at average property prices per square metre and average disposable annual household income in each country, and used these to determine the cost per square metre as a percentage of annual income.

Turkey came in at the top of the list with an average price of $736.12 (R10 915,63) per square metre and an annual average household disposable income of $18 302 (R271 456,36). This puts their affordability level at 4.0%.

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In second place was the United States. IOL reports that although the US has a much higher property price of $2 845.82 (R42 159,83) per square metre with an income it also has a higher average disposable income of $45 284 (R670 866,61) which puts their affordability level at 6.3%.

Third is on the list is Mexico with an affordability rate of 7.1% and South Africa is at number four with an average price of R12 818,16 per square metre and a disposable income of R171 625,36 putting the country’s affordability level at 7.5%.

Brazil, Russia, Latvia, Greece, Hungary and Italy all come on the list in that order ranging from the most affordable to the least.

Buying property is still as hard ever

General Manager of Home and Contents Insurance at Compare the Market, Stephen Zeller, explains that despite the fact that these countries have considerable low affordability rates, buying a property is still quite difficult due to the pandemic.

This is because property prices, costs of living and property shortages are reaching new highs. This has meant that wages and disposable income have struggled to keep up.

Despite this, Zeller says those who want to buy property can still “have some luck finding areas with accessible housing if they are willing to sacrifice proximity to major metropolitan areas”.

South Africans weigh in

Hundreds of South Africans have shared their thoughts on the study and have shared that the word affordable and property simply cannot be placed in the same sentence.

A number of them shared that they can only dream of buying property, let alone a house to stand on the property. Here are some of their comments:

Thando Isaiah said:

“Affordable for everyone else except for the people who actually live in this country.”

Hazel Naicker wrote:

“Shame. I’m born in South Africa and still cannot afford to purchase my 1st home…what’s so affordable.”

Johan Lewis commented:

“Lies. I can’t even afford a piece of an empty plot, never mind a property with a house on it. Who are these buyers? Or should I rather ask WHERE are these buyers from?”

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