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He said there was no noticeable trend of people moving from the suburbs back to the township, but locals wanted to continue staying in Soweto.
“To qualify for a loan is one of the major challenges most people face, but banks seem (amenable), especially when they deal with relatively small amounts of R200 000 or so.
“Soweto has become one of the most preferred areas to live in, especially now that it has public amenities like shopping malls, a sophisticated transport system like the Rea Vaya bus service, etc.
“The township is selling itself,” he said.
In a good month, Ndlovu would sell three to four houses, but as a company they would easily sell about 30 houses, even though they might have 100 bond applications.
Makhosazana Nhlapo, of Prestige Houses, said most activity was happening around the new suburbs of Soweto, such as Protea North, Protea Glen, Dobsonville Extension, Bester in Pimville and Diepkloof Extension.
She said most people in the old Soweto were very reluctant to sell their properties as they considered these to be family homes.
Another problem with doing business in the old Soweto is that it can be a tricky, adds Nhlapo.
She said in one instance she had bought a house for R300 000, but could not sell it as the occupants refused to move out and the authorities won’t evict them.
“The occupants would not even allow potential buyers access to the house and this resulted in a protracted court battle, which cost a lot of money,” she said.
On the rental front, most estate agents said demand far outstripped supply, especially in the R2 000 to R4 000 a month bracket.
FNB home loan strategist John Loos said smaller houses were becoming the most preferred, especially in view of reduced home running costs, which is crucial as municipalities and utilities pile on the rates and tariffs.
He said full-title properties outperformed sectional title, which he attributed partly to better value for money in the full-title segment.
For example, the average price of a three-bedroom, full-title home remains cheaper than a sectional title three-bedroom unit, he said.
The review found that the worst performer was the vacant land market. Loos said this showed that building a new home is significantly more expensive than an existing home, and the household sector remained under significant financial pressure.
“The tough financial times had seen home buyers on major affordability drives. The prospect of even tougher global economic times looming ahead suggests that it will be more of the same for the foreseeable future,” he said.