South Africa’s property market reflects not only the desirability of locations but also the financial stability of the municipalities where they are located. According to a recent report by BusinessTech, prospective homeowners will need a substantial income to afford homes in some of the best-run municipalities in the country, including Mossel Bay and Midvaal. Based on property prices and financial sustainability scores from Ratings Afrika, these municipalities demonstrate strong financial management and attractive living conditions, though they cater to different income brackets.
Best-Run Municipalities: Mossel Bay and Midvaal
The latest assessments from Ratings Afrika ranked Mossel Bay and Midvaal as South Africa’s top municipalities for financial sustainability. Their evaluation was based on six key factors: operating performance, liquidity management, debt governance, budget positioning, affordability, and infrastructure development. Both Mossel Bay and Midvaal scored 74 out of 100, positioning them as models of fiscal discipline and infrastructure development. These municipalities lead the way in effective resource management, contributing to high-quality public services and sustainable growth.
Mossel Bay: A High-Performing Coastal Municipality
Located in the Western Cape, Mossel Bay has maintained its top position due to its consistent financial management. In 2024, the municipality recorded an average home selling price of R2.15 million, with property prices ranging from R1.72 million for a one-bedroom apartment to R5.5 million for a larger home. Mossel Bay’s governance and financial performance have contributed to its reputation as a desirable and well-managed location, making it a premium choice for prospective homeowners.
Midvaal: Gauteng’s Model Municipality
In Gauteng, Midvaal has established itself as a standout for financial governance, having achieved a clean audit from the Auditor-General for ten consecutive years—a notable achievement considering that only 34 municipalities nationwide have clean audits, 20 of which are in the Western Cape. The property market in Midvaal offers more affordable options compared to Mossel Bay, with an average home price of R940,000 and a range from R660,000 for one-bedroom apartments to R2.7 million for spacious homes. This affordability, combined with strong governance, makes Midvaal an attractive option for those looking to buy in a stable municipality.
Income Requirements for Prospective Homeowners
According to property data from Property24 and financial guidelines shared by Harcourts South Africa’s CEO Richard Gray, aspiring homeowners should ideally allocate no more than 30% of their monthly income toward mortgage payments. This standard helps ensure that homeowners can manage other expenses and maintain a healthy financial balance.
Applying this rule, to afford the average property price of R940,000 in Midvaal, one would need to earn approximately R33,413 per month (or R400,956 annually). For Mossel Bay’s higher average price of R2.15 million, a monthly income of around R76,430 (or R917,160 annually) would be required. These estimates are based on a 20-year mortgage with no down payment at the current interest rate of 11.5%.
Contrasting Affordability and Lifestyle Options
The comparison of Mossel Bay and Midvaal underscores the financial diversity within South Africa’s top municipalities. While both offer well-governed environments and strong infrastructure, they serve different income brackets and lifestyle preferences. Mossel Bay’s coastal charm and premium property prices make it ideal for higher-income buyers, while Midvaal’s affordability and effective governance appeal to middle-income households seeking a stable living environment.
For South Africans aiming for homeownership, these municipalities provide a glimpse into the impact of fiscal management on property markets. Whether one is drawn to Mossel Bay’s scenic coastline or Midvaal’s fiscal stability, both municipalities represent attractive options for financially secure living in South Africa.
Sources: BusinessTech
About Author
tshepisosishuba 
