ohannesburg’s property market has experienced unprecedented stagnation, with residential prices remaining at 2010 levels for 14 years. According to Jonathan Kohler, CEO of Landsdowne Property Group, this lack of capital appreciation stems from declining demand, caused by deteriorating infrastructure, high unemployment, and rising crime. Properties across all price ranges, from R600,000 to R15 million, are being sold at historically low prices, reflecting the city’s diminishing appeal.

FNB economist Siphamandla Mkhwanazi attributes the stagnant market to Johannesburg’s failure to create jobs at the same rate as other cities like Cape Town. Between 2014 and 2024, Johannesburg’s employment levels decreased, while other regions saw growth. Although Johannesburg remains a key destination for those seeking economic opportunities, it has struggled to generate sufficient employment to support homeownership demand.

Additional challenges, including inadequate service delivery, low education levels, and increasing crime, are driving migration to other provinces. Lightstone Property’s 2024 report shows that one in four homeowners in Johannesburg is relocating. Gauteng accounts for 48% of sell-to-buy transactions, with the Western Cape capturing 23%. Notably, Cape Town retains a high proportion of homeowners, with an 87% retention rate compared to Gauteng’s falling numbers.

Pretoria, Johannesburg, and Roodepoort lead Gauteng’s outflow, with hundreds of residents relocating annually. This migration underscores dissatisfaction with Johannesburg’s living conditions, highlighting the need for structural reforms to address economic, social, and infrastructural problems. While interest rate cuts could offer short-term relief, broader measures are essential to revitalise Johannesburg’s property market and retain its population.