Johannesburg, the commercial hub of South Africa, has been ranked top in a survey of global cities where buying property has grown cheaper for its citizens in recent years. The study was conducted to determine which cities around the world have been ranked.
An analysis was performed by Online Mortgage Advisor, which is based in the United Kingdom, to determine, throughout the past few years, where purchasing and renting property have become more or less feasible for the typical worker around the world. The analysis compared ever-changing housing prices and average earnings.
The online mortgage broker and guidance service company that connects bidders with mortgage brokers conducted the study, which compared the number of square meters of property that the average full-time worker could afford in 2018 to the number that they would be able to purchase in 2022 in 219 different cities around the world.
In addition to this, it investigated the areas in which local employees are being priced out of the local rental market at the quickest rate by examining the degree to which property prices have outgrown local earnings during the same period.
According to the paper, to determine how much each city’s affordability changed throughout the same period, “We compared each city’s average monthly net salary to the average rental cost of a one-bedroom apartment in the city centre,” the study stated further.
The survey by Online Mortgage Advisor stated that “Johannesburg ranked first and was crowned the global city where buying property became more affordable at the fastest rate for local residents worldwide since 2018.”
According to the study, a worker in Johannesburg could afford a home measuring 14.6 square meters in 2018, but that number will rise to 23.2 square meters in 2022, representing an increase of 8.6 square meters.
The average worker in Johannesburg was required to spend 6.70% less of their annual wage on rent payments during the same period, which indicates that rental costs have become cheaper relative to one another.
According to the survey, the city in South Africa also had the largest positive change in property affordability, followed by Edmonton in Canada and Denver in the United States. The list placed Cape Town in the sixteenth position overall.