Auctions unlock investment stock for SA’s missing middle

• Investors increasingly buy income-ready residential stock at auction to serve South Africa’s fast-growing affordable rental market.
• Multifamily, student housing and township retail assets dominate investor interest ahead of High Street’s February 19 auction.
• Strong tenant demand and limited new supply continue to support rental yields in the missing middle housing segment.

Auction shines spotlight on missing middle housing

South Africa’s property auction market is increasingly releasing stock into one of the country’s most critical housing segments, the so-called “missing middle.”

This group includes households earning too much to qualify for government housing but too little to afford traditional home ownership, creating strong demand for affordable rental accommodation.

According to Greg Dart, director at High Street Auction Co, investors are increasingly shifting away from buying fully stabilised assets and instead acquiring properties where value can be unlocked through development, repositioning or rental optimisation.

The upcoming High Street Auction Co event takes place on Thursday, 19 February at 12:00 at Bryanston Country Club, featuring several assets targeting this fast-growing segment.

Key property categories going under the hammer

Multifamily residential portfolios

‍A highlight is a fully tenanted 37-unit residential portfolio in Centurion, already attracting strong corporate investor interest. The property includes:

• Two-bedroom units of 91m²
• Three-bedroom units of 122m²
• Stable occupancy with waiting lists and no vacancies for four years

Demand in central nodes such as Centurion remains strong due to proximity to employment hubs and affordability advantages.

Student accommodation

‍Fully tenanted NSFAS-accredited student housing facilities in

• Nelspruit
• Pretoria North
• New Doornfontein

They are also drawing investor attention as the academic year begins with strong occupancy levels.

Township retail assets

‍Retail centres serving essential goods markets remain resilient, including:

• Marula Square Shopping Centre in Onverwacht, Limpopo
• KwaNokuthula USave-anchored centre in Plettenberg Bay generating R2.1 million annual income

Development land opportunities

‍Development parcels in Edenvale and Pretoria North are also on offer, with renewed developer interest returning as market conditions improve.

Western Cape hospitality opportunity

‍A turnkey Langebaan guest lodge property is also included, allowing buyers to continue operating the business or reposition it as a private residence.

Greg Dart on market momentum

“Investors are turning back to bricks and mortar, not simply as finished income assets, but to generate development and investment returns while holding assets for rental or resale. Multifamily rental housing is proving to be one of South Africa’s most resilient and compelling property investment sectors,” says Greg Dart.

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He adds that improving economic sentiment, easing energy constraints and stabilising interest rates are encouraging renewed investor participation ahead of the 2026 market cycle.

Call to action

Investors and developers are encouraged to attend the auction or secure bidding information ahead of the event.

• High Street Auction Co Auction
• Thursday, 19 February
• 12:00
• Bryanston Country Club

To register to bid or enquire about available properties, ENQUIRE HERE.

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