Homeowners’ 10-year choice: less house or higher price

But property prices have increased much less than other items in our consumer basket

Freehold and Sectional Title property prices in South Africa have increased over the past ten years. Put another way, homeowners get less house for R1 million than they did in 2016. By comparing what R1 million could buy in 2016 with what the same amount buys today, Lightstone illustrates how property price changes have affected purchasing power over the past decade.

Nevertheless, the additional investment required to purchase an equivalent property in 2026 has increased by less than headline inflation and the prices of several everyday consumer goods over the same period.

Between 2016 and 2026, Lightstone’s House Price Index (HPI) shows that Sectional Title property prices increased by approximately 29%, while Freehold house prices rose by around 41%. To put this into perspective, a Sectional Title unit valued at R1 million in 2016 would be worth R1.29 million in 2026, and a Freehold house valued at R1 million in 2016 would now be worth R1.41 million.

Increases in both Freehold and Sectional Title property prices have lagged behind general inflation of 59% over the past decade. By comparison, average monthly earnings in the formal sector rose by 72% over the same period.

However, while formal-sector employees may be earning more, they are also spending considerably more on everyday essentials. Petrol prices have more than doubled, while electricity prices have increased even more sharply over the decade. Consumers are also paying significantly more for a Big Mac, with its price rising by 86%.

By comparison, property prices have increased at a slower rate than the price of an entry-level Polo Vivo, which rose by approximately 60% over the same period.

Sources: Stats SA, TopAuto, BusinessTech, Fuels Industry Association, Eskom tariff history, The Economist Big Mac index. In 2016, Netflix billed in US dollars; therefore the 2016-rand price is approximate.

Prices by area type

In Mid-value areas, R1 million could buy four out of five Freehold houses sold in 2016. Today, it buys fewer than half. In High-value areas, R1 million could buy one in three Freehold houses in 2016, compared with fewer than one in ten today.

In Mid-value areas, R1 million can still buy just over eight out of ten Sectional Title units sold, compared with more than nine out of ten in 2016.

What R1 million buys today: from Freehold to Sectional Title

Sectional Title units accounted for 53% of R1 million property transactions in 2026, up from 41% in 2016. By comparison, the share of Freehold houses in this price segment declined from 59% to 47% over the same period. As property prices have increased, the purchasing power of R1 million has declined, making buyers more likely to purchase a Sectional Title unit than a Freehold house with the same budget.

What R1 million buyers bought (share of all R1 million sales)

In 2016, the most common R1 million property purchase was a Freehold house in a High-value area. Today, such properties are far less common. Buyers now face a trade-off: move to a Mid-value area to retain a Freehold house or remain in a High-value area and opt for a Sectional Title unit. These two options now account for similar shares of R1 million property transactions.

Where R1 million buyers bought (share of all R1 million sales)

Less living space for a R1 million property

Homeowners generally get less living space for R1 million in 2026, even when buying in the same area type.

So, what’s changed?

The house has lost around 40 m² of living space – an area roughly equivalent to a double garage. In Mid-value areas, the typical R1 million house is approximately 40 m² smaller than in 2016, while its stand is about 180 m² smaller – roughly two-thirds of a tennis court.
The High-value house became rare. In High-value areas, you can still get the same three-bedroom house of about 185 m², but there are about a third as many of them selling at that price, so they are much harder to find.
The flat lost a bedroom. In 2016, n R1 million flat in a Mid-value area was most likely a three-bedroom unit. Today, it is most likely a two-bedroom unit and about 25 m² smaller.
And a bathroom. In 2016, three out of four R1 million Sectional Title units in Mid-value areas had a second bathroom. Today, that figure has dropped to approximately one in two.

Flats in the big cities and on the coast

As expected, property price movements have mirrored shifting buyer sentiment towards metros and towns. The table below focuses on Sectional Title homes in the main metros and coastal areas. "Price per m²"accounts for difference in flat size when comparing prices.

Johannesburg is the bargain. The typical flat in Johannesburg costs only about 7% more than in 2016. R1 million still buys more than half of all flats sold there, almost the same as ten years ago.
Cape Town has become more expensive. Prices rose by approximately 64%. R1 million used to buy every second flat sold in Cape Town; today it buys about one in five.
The Cape coast boomed. The biggest increases are all in Western Cape and Eastern Cape coastalareas: prices in the Garden Route, Jeffreys Bay and Hermanus more than doubled. In Hermanus, three out of four flats sold for under R1 million in 2016; today barely one in eight does. On the KwaZulu-Natal (KZN) coast, it is a different picture: Ballito, already expensive in 2016, barely moved, and the South Coast rose about as much as Pretoria.

* Fewer than 60 sales in one of the years; treat these figures with care.

Suburbs: where R1 million used to go, and where it goes now

The first table compares the prices of typical flats in suburbs where properties sold for approximately R1 million in 2016 with the prices of properties sold in these areas today. While the size of flats sold may have changed over the decade, the figures provide an indication of what buyers can expect to pay for a property in these suburbs today.

In several Johannesburg suburbs, including Paulshof, Sunninghill, Douglasdale and Beverley, R1 million buys more today than it did ten years ago. Typical flats sold in these areas now cost less than they did in 2016, even before adjusting for inflation.

Property prices in Tshwane and KZN have performed better than those in Johannesburg, although neither matched the increases recorded in the Western Cape. In suburbs such as Observatory and Woodstock, typical prices of flats sold have risen by approximately 40% or more, while at the higher end of the market, prices in Keurboomstrand, near Plettenberg Bay, have increased by around 140% over the past decade.

The table below highlights suburbs and towns where the typical flat sold for approximately R1 million in 2026, compared with prices recorded in 2016. In Johannesburg, Glenferness and Magaliessig stand out for recording price declines, with flats that sold for more than R1 million in 2016 now typically selling for around R1 million or less.

Of the five Johannesburg suburbs analysed, Mulbarton recorded the largest increase, with the typical flat price rising from approximately R700 000 in 2016 to just over R1 million in 2026. In Tshwane, the typical flat price in Pretoriuspark Extension 32 increased from R435 000 in 2016 to just over R1 million in 2026.

* Fewer than 30 sales in one of the years; treat these figures with care.

About the numbers

Typical price: the price of the home in the middle, with half selling for more and half for less. We use the median instead of the average because a few very expensive sales push an average up.
Freehold: you own the house and the land. Houses in Estates are included.
Sectional Title: a flat, townhouse or unit in a complex. Units in Estates are included.
Type of area: Lightstone groups suburbs by the value of their homes and does not include many townships and RDP housing.

Source: Lightstone deeds registry data. Sales registered in 2016 compared with sales registered from September 2025 to August 2026. Only normal market sales of homes are included: no vacant land, no garages sold separately, no part-shares or timeshare, no deals covering more than one property, and no transfers between family members or other non-market transfers. Bedrooms, bathrooms and sizes come from Lightstone's prop.