Gauteng's next property boom could be first-time buyers

• First-time buyers account for 44.2% of Johannesburg and 57% of Gauteng South and East home-loan applications.
• Gauteng's relative affordability is giving younger buyers an increasingly valuable entry point into property ownership.
• Buyers should compromise on size and finishes, not location, fundamentals or financial headroom.

For several years, semigration has dominated South Africa's residential property narrative, with households relocating from Gauteng to the Western Cape and other lifestyle destinations in search of security, better municipal services and quality of life.

But Gauteng's next major property story could come from the opposite direction.

Rather than focusing on homeowners leaving the province, attention is increasingly turning to the first-time buyers who can still afford to enter its property market.

As prices in parts of the Western Cape increasingly challenge younger buyers, Gauteng continues to offer one of South Africa's broadest selections of apartments, townhouses and freestanding homes across multiple price points.

For investors, developers and estate agents, that affordability advantage could become an increasingly important demand driver.

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"Gauteng still offers first-time buyers something increasingly valuable, a genuine entry point into home ownership. That could become one of the most important drivers of the provincial property market over the next few years." Antonie Goosen, principal and founder of Meridian Realty

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Home-loan data reveals the opportunity

‍The numbers are already pointing towards the importance of first-time buyers. According to ooba Home Loans data for the first four months of 2026, first-time buyers accounted for 44.2% of home-loan applications in Johannesburg and a striking 57% in Gauteng South and East.

The average purchase price paid by first-time buyers in Johannesburg also increased 21.8% year-on-year to approximately R1.38 million. Goosen cautions against interpreting those numbers as evidence that Gauteng is suddenly entering another property boom. The more significant trend, he argues, is accessibility.

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"The more interesting story is not that prices are suddenly running away. It is that people can still enter the market here. There are properties at price points where a first-time buyer with a reasonable income and access to finance can realistically become an owner." 

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That increasingly differentiates Gauteng from some of South Africa's strongest-performing coastal markets.

Cape Town remains one of the country's most sought-after residential markets, but sustained demand and significant house-price appreciation have raised the financial threshold for entry.

Gauteng presents a different proposition. Johannesburg, Pretoria, the East Rand and surrounding nodes offer buyers considerably more choice across different property types and price bands, potentially allowing first-time purchasers to enter the market without having to abandon access to major employment and commercial centres.

The first property doesn't need to be the dream property

‍For Goosen, one of the biggest mistakes younger buyers can make is expecting their first purchase to deliver everything they ultimately want from a home.

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That can delay ownership unnecessarily. "The first property does not need to be the dream property. It needs to be a sound property that you can afford, in an area where people want to live, and which gives you the opportunity to start building equity."

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The objective of a first purchase should therefore be to establish a financially sustainable foothold in the market. Once equity and income grow, buyers have greater flexibility to move up the property ladder.

1. Compromise on size before location
 For buyers working within a tight budget, compromises are inevitable. The important decision is where to compromise. Chasing more square metres at the expense of location can prove costly when the property eventually needs to be sold or rented.

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"I would generally compromise on size before I compromise too heavily on location. A smaller property in a good area with sustained demand can make more sense than a large property where resale demand is weak."

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For first-time buyers, location therefore remains one of the property's most important defensive characteristics.

Access to employment nodes, transport routes, schools, retail, security and established amenities can support both future resale demand and rental prospects.

A smaller home in the right market can ultimately prove a stronger asset than a bigger home in the wrong one.

2. Don't dismiss sectional title
 The traditional expectation that a first home should be a freestanding house with a garden and garage can put ownership unnecessarily out of reach.

Sectional title can provide an alternative route into sought-after suburbs. Apartments and townhouses typically offer lower entry prices and can provide security and convenience while giving buyers access to locations they may not otherwise be able to afford.

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"Buying an apartment or townhouse as your first property is not settling for second best. In the right scheme and location, it can be an extremely sensible way to enter the market."

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But the purchase price should never be the only consideration. Prospective buyers need to investigate the body corporate's financial position, levy history, maintenance programme, reserve funds and any existing or anticipated special levies.

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As Goosen puts it: "You can compromise on having your own garden. You should not compromise on buying into a badly managed scheme."

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3. Compromise on finishes, not fundamentals
 A dated kitchen can be replaced. Walls can be painted and bathrooms renovated. A poor location, serious structural defect or persistent security problem is considerably harder and potentially far more expensive, to fix.

Goosen says inexperienced purchasers can easily become distracted by cosmetic presentation. "One of the easiest mistakes is falling in love with finishes. A beautiful kitchen does not compensate for structural problems, poor security or a bad location."

The reverse can present an opportunity. An older property with dated finishes but strong fundamentals can give first-time buyers an opportunity to purchase well and improve the property gradually as their finances allow. "Paint and cupboards can be changed. Location cannot."

4. Don't buy at the limit of what the bank offers
 Perhaps the most important compromise has nothing to do with the property itself. It concerns how much debt the buyer takes on. Being approved for a particular home-loan amount does not necessarily mean the buyer should spend every rand available.

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"If the bank says you qualify for R1.5 million, it does not automatically mean you should buy a R1.5 million property. There is enormous value in leaving some space in your monthly budget."

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The bond repayment is only one component of the real cost of ownership. First-time buyers need to budget for municipal rates, levies where applicable, insurance, utilities, maintenance and unexpected repairs, while retaining enough financial capacity to absorb increases in household expenses.

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"Your first home should help you build financial security, not leave you financially stretched every month."

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Gauteng's affordability could become its competitive advantage

‍For years, much of South Africa's property conversation has centred on where established homeowners are relocating and how semigration has shifted demand towards the Western Cape and other coastal markets.

The next phase may require looking at the market differently. Gauteng remains South Africa's largest economic hub and, crucially, still offers a wide spectrum of housing at price points accessible to younger households.

That combination of employment opportunity, housing choice and relative affordability could make first-time ownership one of the province's most important residential themes over the next few years.

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"For years the property discussion has concentrated on where existing homeowners are moving. Perhaps the next big story should be about the people buying their first home."

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For prospective buyers, the message is equally straightforward: don't wait for the perfect property if a sound, affordable one can get you started. Compromise intelligently. Protect your monthly cash flow. Prioritise location and fundamentals.

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Goosen concludes: "The important thing is to buy something sound, buy something you can afford and get onto the ladder."

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