Township property: An untapped market?

Soweto leads township 'big three'; Khayelitsha needs more of Cape Town's shine

- HAYLEY IVINSDOWNES

MUCH HAS been written about the residential property markets in South Africa's iconic cities-Johannesburg, Cape Town and Durban - but what of the largest townships in or adjacent to each of these cities: Soweto, Umlazi, and Khayelitsha?

While the glossy brochures and media headlines often focus on city skylines and prime real estate, there's a vibrant pulse of urban transformation that often beats strongest in the townships on their periphery.

Townships like Soweto, Umlazi, and Khayelitsha reflect South Africa's urban reality in ways that city skylines cannot.

While each carries the weight of inequality and historic disadvantage, they are also centres of growth, resilience, and entrepreneurship.

Soweto's scale and maturity give it an edge in income and property value, but Khayelitsha's rapid growth highlights the magnetic pull of the Western Cape.

Understanding these dynamics is critical, because the future of South Africa's property market is as much about our townships as it is about our cities.

These sprawling communities are home to significant portions of the urban population, and theirs are the untold stories frequently omitted from mainstream property narratives.

Lightstone used the three provinces with the highest GDP, and then identified the largest cities in each before selecting the most populous township in each.

Data was then examined to compare the townships' population size, household income, property values, and property transfer activity.

How many people live there? Soweto, near Johannesburg, is South Africa's most iconic township, and is home to around 1.5 million people. Its roots can be traced back to the early 1900s before being formally named as South Western Township in 1963, and it's known today for its vibrant cultural life and thriving tourism industry.