We’re still in a buyers’ market because of the increasing availability of properties which keeps house prices down. According to Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, ongoing load shedding still means more people are looking for energy efficient homes with renewable power sources, even in the more affordable market.
Odendaal says Gauteng South and East remain the most affordable region for first-time homebuyers, with an average purchase price of R973,499 – the only region in South Africa with an average first-time buyer purchase price below R1 million.
"We experienced no significant changes in value here during the past 12 months.
"Affordability, mainly because of the rise in general cost of living, increasingly puts the entry level sector under pressure. I must also mention here that the significant drop in prices contributes to the increasing activity around the R3 million mark, aimed at upgrading to a previously unaffordable area," he says.
Nirvan Bhudai, franchisee Rawson Properties Kyalami says a good area to consider is the southwestern border of Johannesburg in particular suburbs like Midrand, and Kyalami.
"The entry prices in this area range from entry-level starter homes from R900k - 3.5million all the way up to super luxury living to R55million.
"The demand right now is mostly high for one- and two-bedroomed properties and 3-bedroomed family homes in security estates which are very popular amongst young professionals and families. The trend of lock-up-and-go convenience is hugely appealing to today’s busy families and professionals, and these areas in particular have everything to offer, from top schools, childcare, gyms to laundromats, restaurants, concierges, spas, cinemas, pools, car washes, and sports grounds," says Bhudai.
Nadia Aucamp, Broker/Manager of RE/MAX All Stars In Johannesburg South says there is still a steady demand for properties and we have not seen a decline in prospective purchasers.
"This is definitely due to the fact that the South of Johannesburg still offer great value for money and you have easy access to Johannesburg CBD and the East Rand. The bargain entry level properties are definitely high in demand.
"Your entry level in Rosettenville is a 1 bedroom flat with a starting price of R250 000. Depending on the area that you are looking at the prices will increase should you move closer to the East Rand. Entry level houses are also available from R520 000 for a 2 bedroom home in Rosettenville," she says.
Aucamps says the South of Johannesburg definitely offers a lot to the potential buyers. We have seen an increase in investors buying up properties and renting them out to multiple tenants. There are also more affluent areas in the South of Johannesburg such as Glenvista, Bassonia and Aspen to name a few. Here the entry level prices are a lot more in comparison to the properties situated in the “Deep” south of Johannesburg.
Nelson Ferreira, Pam Golding Properties regional head in Gauteng, says trends in bargain entry levels homes are definitely around security. "We have also found that in some areas where sectional title, which was in high demand because of price and security, has experienced slightly less demand because buyers can now buy homes for the price that would pay in sectional title. Sectional title naturally involves costs like levies but the more trendy upmarket complexes are in some cases more expensive per square metre than the full title homes in the same area," he says.
Ferreira says entry level differs from area to area but on the Johannesburg East corridor you can still buy a 3 bed 2 bath home from R950 000 to R1 million.
"The East Rand has always offered great value for money across all price points," he says.
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