Poetically known as the ‘city of roses’ due to the abundance of the flower in the area, Bloemfontein was officially founded in 1846, and was originally used as a fort for the British army. Today it is the capital city of the Free State Province and is the judicial capital of the nation. It is one of three national capitals, with Cape Town as the legislative capital, and Pretoria, the administrative capital.
This two bedroom house in Ehrlich Park, Bloemfontein, is on the market for R649 000 - click here to view.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says property in Bloemfontein central is particularly popular with younger generation home buyers.
He says according to Lightstone data, around 46.75 percent of recent home buyers in the area were between the ages of 18 and 35 years old. The data revealed that while the younger generation is driving the property market in the area, it is their older counterparts that own the majority of the property. Around 43.3 percent of existing homeowners in Bloemfontein central are between the ages of 36 and 49 years old. This demographic also represents the largest percentage of recent sellers (36.14 percent).
Goslett says property in the area consists mostly of sectional title units (90.59 percent), with a smaller percentage of freehold properties (9.41 percent). Freehold property prices saw massive growth between 2004 and 2009, with the average price increasing by around R2.8 million during that period.
This two bedroom unit in Universitas, Bloemfontein, offers a patio. It is on the market for R820 000 - click here to view.
Although the price dropped in 2010, it saw recovery in 2011 and has continued to show excellent growth ever since, hitting a record high of R5.285 million last year. Sectional title unit prices have been far more stable throughout the last 12 years, seeing marginal but solid growth though.
According to Goslett, while property sales in the area were remarkably high in 2004, they gradually slowed down with the lowest number of property sales seen during 2010. Since 2010, the sales volumes have increased and have continued to show a steady upward trend.
He says around 72.3 percent of properties sold in Bloemfontein central last year were those priced below R400 000, while 24.1 percent were priced between R400 000 and R800 000; 2.4 percent of properties sold during this period were priced between R800 000 and R1.5 million, while just 1.2 percent were priced above the R3 million mark.
Demand for sectional title property in Bloemfontein has consistently proved to be relatively strong, however, many buyers are still struggling to meet lending criteria and show the necessary affordability levels required for finance approval, much like other regions in the country, says Goslett.
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