So far 2015 has been a good year for the residential property market in most urban areas, with the most common complaint among agents being the lack of stock to sell.
This is according to Bruce Swain, MD of Leapfrog Property Group, who says since January they’ve seen a 38% increase in turnover year-on-year, exceeding their expectations.
A quick look at three main areas in Gauteng, namely Roodepoort, Johannesburg South and Johannesburg North-East, indicates that most of the demand is currently in the R3 million and under market, he says.
Property flying in Roodepoort
This three bedroom, two bathroom cluster home in Roodepoort boasts unobstructed views, and is situated in a complex with a pool. The home has a double garage that allows direct access to the home. It is on the market for R1.44 million - click here here to view.Johan van Schalkwyk, Principal of Leapfrog Roodepoort, says properties ranging from R800 000 to R1.6 million are selling quickly in this area.
“We’re finding that buyers are looking more at the price than at the property as people struggle to cope with increased daily expenses such as having to pay higher electricity bills and e-tolls”.
Currently the more ‘affordable’ areas such as Wilgeheuwel and Weltevreden Park are in high demand, with properties closest to the highway being the most sought after, he says.
Good news for buyers is that developments are booming in the area, and Van Schalkwyk says developers are now fighting for land that already has services installed.
“The developers are not focussing on the high-end markets, but more first-time home buyers, with property prices ranging between R500 000 and R900 000”.
All of this development has also led to the building of new public schools in Wilgeheuwel, which didn’t previously have any, increasing the area’s popularity with young families.
Van Schalkwyk’s advice to buyers? “Do your homework and know what you can afford, so that if you see a property you like, you can make an offer immediately.”
Homes within the lower end of the market are selling quickly and many a buyer has lost out to a prepared rival buyer, he says.
The South is growing
This three bedroom, two bathroom home in Meyersdal is close to schools and shopping centres. It has a study, and includes a one bedroom, one bathroom flatlet. It is on the market for R2.25 million - click here to view.Brian Rogers, Agent Support Manager at Leapfrog JHB South, says the under R2 million property segment is also experiencing the most demand in the south, something he credits to the fact that a number of the buyers are new entrants to the market and can’t afford anything more expensive.
“At the moment I would say that approximately 30% of buyers are purchasing sectional title units, while the remaining 70% are going for freestanding properties,” says Rogers.
Popular areas include Glenvista, Bassonia and Winchester Hills, while there is still some interest in Linmeyer, Oakdene and Rosettenville. Brian points out that there are numerous developments underway in the south, and that property prices in certain areas have doubled in the last decade.
“My advice to buyers would be to look at numerous properties prior to making a decision, as there are a lot of properties in the current market. Most importantly to consult with a qualified and professional estate agent”.
Smaller properties in demand in the North-East
This three bedroom, two bathroom home in Croydon has a neat garden and double garage. It is on the market for R1.295 million - click here to view.Depending on the area, properties in the R1 million to R3 million price bracket are most in demand in Johannesburg North East.
Michelle Cohen, Principal of Leapfrog Johannesburg NE, says most buyers are going for smaller, more manageable properties, whether they are sectional title or freestanding.
“We’re certainly finding that buyers are taking a much closer look at levies, rates and homeowners' association fees before signing,” Cohen says.
She says even slightly pricier properties, those above R3.5 million, are selling within three months, and that properties that don’t sell within that time frame are generally overpriced.
“My best advice to buyers would be to get pre-qualified for a home loan so that they know beforehand what offer they can make. Properties are not staying on the market long and buyers need to come prepared,” she says.
Large areas of Johannesburg are experiencing stock shortages, but that doesn’t necessarily mean it’s a seller’s market.
Buyers are educated and won’t pay for an overpriced property. On the other hand, it would seem that buyers can’t afford to hesitate too much either, as what is on the market and priced correctly is selling.
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