Banks have increased their lending on budget properties in areas such as Tembisa, Kaalfontein, Ivory Park and Ebony Park in Midrand according to Julie Davison-White of Aida.
She says that first-time buyers with a good credit record are being granted 100% bonds on properties costing less than R500k. There is no transfer duty on these properties and this is also contributing to higher sales.
Davison-White says that freestanding or stack simplex properties in secure sectional title complexes and priced between R450k and R550k are in demand. She says that people are buying these properties, upgrading them and then selling them for between R650k and R900k.
Apparently there has been an increasing level of interest in the Midrand area because of its strategic location midway between Pretoria and Johannesburg.
She says that prevailing prices in Midrand are considerably lower than those in suburbs such as Fourways and Sunninghill making suburbs such as Vorna Valley and Halfway Gardens an attractive alternative for buyers.
“We are expecting further sales growth in the coming year in the sale of homes costing between R850k and R1,5-million provided that the properties are well-priced by the sellers and the buyers have sufficient cash to cover the deposit of between 10% and 20% depending on the property,” Davison-White says.
She says that in the past two years a large number of distressed property sales were recorded and in many cases the sellers abandoned the property market and became tenants in the same suburb.
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