Where R1 million still buys real property value in 2026

• Smart location, not size, now drives returns in the sub-R1m market.
• Yields of 8% - 12% remain achievable in well-chosen urban and student nodes.
• Ownership costs matter as much as purchase price, run the numbers, not the dream.

1. The R1 Million Question: Can you still win?

Finding value in South Africa’s property market once meant sacrificing location or scale. Today, with interest rates easing and demand reshaping, R1 million can still secure a credible, income producing asset, if you buy with strategy, not emotion.

According to African Investor, nearly two-thirds of all residential transactions still happen below R900,000. The bulk of this stock sits in Gauteng, KwaZulu-Natal and the affordable fringes of the Western Cape. For investors, this is where liquidity, tenant demand and future price growth intersect.

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Grant Smee, CEO of Only Realty Property Group, is blunt:
“When investing in this price bracket, you need to know where to look and how to structure your purchase for maximum returns. This is about financial performance, not lifestyle fantasy.”

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2. Where R1 million investments still works

Gauteng
Apartments and townhouses under R1 million remain plentiful in nodes such as Ferndale, Northwold, Witpoortjie and parts of Ekurhuleni. One-bedroom units typically trade between R800,000 and R1.2 million.

Smee notes: “Access beats prestige. Areas connected to major arterials or the Gautrain consistently outperform because tenants value time over status.”

‍Western Cape
While luxury dominates headlines, affordability still exists north of Cape Town’s CBD. Parklands, Bellville and Goodwood offer studios and one-bedroom apartments from R900,000, delivering 6% - 8% yields.

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“These fringe markets are maturing fast. Over the next decade, they’ll look very different,” says Smee.

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‍KwaZulu-Natal
Durban’s regeneration is re-awakening investor confidence. Units from R650,000 in Durban Central and South Beach attract students and young professionals, with short-stay potential along the beachfront.

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“The scale of upgrade along the Durban beachfront will reprice this entire corridor,” Smee adds.

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3. What to buy under R1 million

Shared & multi-tenant units
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“Co-living and young professional housing is a massive opportunity for independent investors,” says Smee. High yields, resilient demand, and scalable models.

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Student Accommodation nodes
University precincts deliver consistent occupancy and above-average returns.

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“Stable demand underpins everything. Education hubs don’t cycle the way luxury does.”

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Sectional Title Apartments
Security and affordability make them perennial favourites—but only if the body corporate is well run.

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“Levies, mismanagement and poor trustees can destroy returns. Get involved or don’t buy,” warns Smee.

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4. Rent or Own: The new maths

After a 125-basis-point rate cut since late 2024, a R1 million bond is roughly R587 cheaper per month, over R140,000 saved across 20 years.

In many metros, bond repayments and rentals are now similar:

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Smee stresses that the decision must be realistic:

“If a property is cash-flow negative, can you absorb that without falling behind? At the same time, you don’t build wealth renting forever; eventually, you need an asset that works for you.”

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The True Cost of Ownership 

For buyers, transfer expenses still apply. On a R1 million purchase with a 100% bond, estimated upfront fees include:

• Bond registration: R34,258
• Transfer costs: R28,221

Owners will also take responsibility for rates, levies, and maintenance, which are costs that tenants typically avoid. However, the long-term financial benefit remains substantial. Smee notes that capital appreciation averages 4% to 10% annually, depending on the segment, and no transfer duty applies under R1.1 million.

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“If you’re paying rental, that’s almost equivalent to a bond… it could be time to buy. This way, you’d be building an asset that continues to appreciate in value.

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“In property, there are risks, also great opportunities,” continues Smee. “Start small, buy smart, and reinvest profit. For most people, one properly vetted purchase below R1 million is the first step toward a portfolio, not the finish line.”

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