From Soweto to Khayelitsha, here are South Africa’s richest and poorest townships.
While South Africa’s property spotlight usually shines on Johannesburg, Cape Town, and Durban, little attention is given to the townships in these metros. Soweto, Umlazi, and Khayelitsha are the largest townships in these cities; however, they remain easily forgotten, despite their size and significance.
Lightstone’s data compared the three townships from the provinces with the highest GDPs to determine which is the wealthiest, using factors such as household income, home values, adult population, and property transfers, among others.
Among other services, it provides information, valuations, and market intelligence on properties in South Africa.
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The township with the most people
Data has revealed that Soweto, in Gauteng, houses at least 1.5 million people, which is the largest number compared to its counterparts, and it is the oldest township. It was created in the early 1900s and was formally named South Western Township (Soweto) in 1963.
Lightstone has described Khayelitsha, in the Western Cape, as the fastest-growing township in the country. The area has around 520 000 residents and was created around the mid-1980s, making it the youngest of the three townships.
Umlazi, in KwaZulu-Natal, has approximately 486 000 residents. It was established in the 1960s and is now the largest township in Durban.
“All three reflect South Africa’s complex socio-economic legacy, characterised by inequality, resilience, and a strong sense of community spirit.”
Township with most adults
According to Lightstone, Umlazi has the lowest adult population, at 66%, while Soweto and Khayelitsha’s adult populations sit at 75%.
One of the reasons why Umlazi has the lowest population is that many young adults relocate from Umlazi to Durban, Gauteng, or Cape Town for job opportunities. When they arrive in Gauteng or Cape Town, they typically reside in Soweto or Khayelitsha, as these areas offer more affordable rental properties compared to the cities.
According to estimates by Lightstone, “Umlazi’s adult population grew by 10% over the last ten years, behind Soweto at 25% and well behind Khayelitsha at 40%, which probably reflects the ongoing inward migration into the Western Cape from other provinces.
“Despite challenges such as unemployment and crime, these townships are hubs of innovation, culture, and emerging entrepreneurship, and are playing a crucial role in the country’s evolving urban landscape.”
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Soweto is the wealthiest
Lightstone data revealed that Soweto is the wealthiest of the three townships in terms of household income, while Khayelitsha is the poorest.
“More than 20% of Soweto’s households have income exceeding R13 000 a month, like Umlazi, but significantly more than Khayelitsha.
“Soweto has more than 20% of households earning less than R6 500 a month, compared to just under 60% in Khayelitsha and around 45% in Umlazi.”
Nearby cities to these townships are significantly wealthier. Lightstone stated that more than 70% of Johannesburg’s working class earn more than R13 000.
Property values
According to Lightstone, Soweto reigns supreme in property values, with house prices averaging around R585 000, followed by Umlazi at R560 000 and Khayelitsha at R350 000.
“Soweto has seen government-driven upgrades, middle-class housing developments, and even lifestyle estates, while Umlazi has formal housing areas like Z and BB sections, with government and private property investment.
“Khayelitsha, on the other hand, is dominated by informal or lower-income Reconstruction and Development Programme (RDP) housing.
“Most of the homes in Khayelitsha are valued at between R200 000 and R400 000, while the majority in Soweto are valued between R400 000 and R700 000 and between R400 000 and R600 000 in Umlazi. Soweto has 1 600 properties valued at more than R1 million, while Khayelitsha has none.”
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