When South Africa first entered a hard lockdown in March last year, experts predicted a massive slump in home buying, with expectations that prices would fall by between 5% and 15% for the year.
Instead, house prices increased by 2% and 2020 probably registered the highest volume of mortgage approvals in over a decade, says Siphamandla Mkhwanazi, FNB senior economist.
While banks remained cautious (the percentage of approved applications was lower in 2020 compared to 2019), many more people applied for home loans. According to data from the Reserve Bank, more than 250 000 mortgages were granted by September last year.
SEE: Looking for a home that ticks all your boxes? Try Property24 Alerts
“More people can now afford to make aspirational purchases and, for the first time in decades, it is cheaper to buy a home than it is to rent one of the same value,” says Carl Coetzee, CEO of BetterBond, bond originators in South Africa.
According to Lightstone Property data, a total of 54 955 bond registrations were recorded at the Deeds Office over the period of January to March 2021. The RE/MAX National Housing Reports reveal that this figure is 22% up from last quarter and an unbelievable 46% up on Q1 2020’s figures.
As of Q4 2020, sales priced between R800,000 and R1,5 million continue to account for the largest portion at 27.4%* of all transfers occurring in Q1 2021. Coming in behind this figure were transactions priced between R400,000-R800,000 which make up 23.8%* of the total transfers. This is followed by sales priced below R400,000 which now account for 23.6%* of all transfers in Q1. Sales between R1,5 million to R3 million accounted for 19.1%* and those priced above R3 million account for 6.1%* of the total transfers this quarter.
When reviewing each market segment in isolation, the number of transfers over R3 million has grown the most by 59% on the figures from Q1 2020. This is followed by the number of transfers that occurred between R1,5 - R3 million price point, growing by 53% YoY; transfers between R800,000 - R1,5 million grew by 42% YoY. Sales below R400,000 grew by 20% YoY and those between R400,000-R800,000 grew by 36% YoY.
“These numbers are staggering, especially when one takes into consideration that Q1 2020 was a normal, pre-pandemic quarter. Owing to the back-log of registrations when the Deeds Office closed, it could be expected that the number of registrations in Q3 and possibly even Q4 would be higher than the figures in Q2 2020; but nobody could have predicted that the numbers would be this high and that the same levels of demand would continue into the new year,” comments Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.
Many sought-after suburbs in Gauteng are offering homes within this price, here's what's on offer.
According to Keba Ngobeni, sales associate for RE/MAX All Stars, Glenvista, Mulbarton and Brackenhurst in Alberton offer good schools, great location and well-priced properties in the R2 million and R3 million price range.
Sandton
Sandton offers many suburbs where you can buy a nice family house, sometimes with up to four bedrooms along with a good sized garden and pool in the R2 million to R4 million range, says Charles Vining, managing director for Seeff Sandton.
Suburbs such as Bryanston, River Club, Fourways, Lonehill, Strathavon, Hurlingham Manor, Morningside, Woodmead and Dainfern all offer property in this price range. These suburbs offer good proximity to the Sandton and Fourways CBD areas. They also offer access to Johannesburg/Sandton’s top schools including Redhill, Crawford, St Stithians, Brescia House and Michael Mount Waldorf, Bryanston primary and high schools and many more, making them particularly appealing to family buyers but also to professionals.
For young professionals, apartments and sectional title property offer great value and this sector was particularly active over the last year. The best value for first-time buyers is in Douglasdale, Paulshof and Lonehill where you can find apartments for under R1 million. These apartments are often sought for investment purposes as well. The suburbs offer good proximity to the Sandton, Montecasino and the Fourways precincts. Apartments are also often sought for investment purposes.
There are currently *2 115 new property listings in Sandton market, according to Property24 Trends Data, with the average Asking price for the area being R2.3 million. The average sale price per erf for 2020 was about R2.7 million, while Section Scheme Units average sale price for the same period is R1.15 million.
The latest residential listings on Property24 show that two-bedroom homes are most widely available, at an average list price of R1.4 million, while three-bedroom home currently in demand are being sold at an average of R2.75m. Sellers in the area fall within the 36-49 years (40%), while buyers in the 18-36 fall in (39%) - followed by 37% within 36-49-year age group.
Click here to see all the latest trend data for Sandton
Randburg and Roodepoort
The Randburg and Roodepoort area offers exceptional value below R3 million, says Butler.
He says the widespread value for money on offer in the Randburg/Roodepoort area has always stood it in good stead, insulating it to a degree from the financial woes of the last few years. It is also why the area has benefited greatly from the low interest rate.
The area is particularly popular with first-time buyers but also great for those looking to trade up to a better neighbourhood or bigger house. Family buyers usually look for at least three bedrooms, a nice sized yard with a swimming pool, a double garage and often also for staff accommodation.
Popular suburbs in the R2 million to R3 million and above range include Northcliff, Fairland, Emmarentia and Greenside. Schools are a big attraction for the areas, but they also generally offer a great suburban lifestyle with neighbourhood amenities close by.
Pretoria East
The most active price bands currently in the Pretoria East area is below R4 million with the R3 million to R4 million range popular for its choice of family houses, usually with up to three and four bedrooms, large garden and outdoor pool area, says Gerhard van der Linde, managing director for Seeff Pretoria East.
The greater Waterkloof area including Waterkloof Ridge and Waterkloof Heights are great for family buyers especially given the access to excellent schools and the University of Pretoria. The area is also popular for ambassadorial staff with a number of homes either rented or owned by foreign embassies.
The suburbs are also popular for upwardly mobile buyers looking for a solid family home and a sought-after address. Many of the homes also offer the opportunity to renovate and upgrade and customise it for your own lifestyle needs. Good security is a key feature of these areas.
Centurion is sought-after for its laid-back suburban lifestyle offering buyers access to excellent schools along with convenient access to Pretoria, Midrand and the Johannesburg/Sandton areas. Properties in the R3 million to R4 million range would generally be in one of the security estates in the Centurion area according to Tiaan Pretorius, manager for Seeff Centurion.
The area is renowned for its large choice of estates with about thirty to choose from where you can find a good sized family house with three bedrooms, a garden and swimming pool.
Security estates are especially popular with family buyers and professionals. These include estates such as Golden Fields, Brooklands, Amberfield, Silver Stone, Summerfields, Copperleaf, Candlewoods, Irene View, Valley View, Centurion Golf Estate, Southdowns and Midstream. Many of the estates offer added lifestyle benefits such as communal grounds, play areas for children and even private schools such as in the case of Southdowns and Midstream.
Centurion has currently *1 802 new property listings, according to Property24 Tends Data, with the average sale price for the area being R2.03 million. The average sale price per erf for 2020 was about R1.67 million, while Section Scheme Units average sale price for the same period is R1.15 million.
The latest residential listings on Property24 show that three-bedroom homes are most widely available, at an average list price of R1.8 million. Sellers in the area fall within the 36-49 years (43%), while 43% of buyers also fall within this age group - followed by 41% within 18 to 35-years age group.
Click here to see all the latest trend data for Centurion
Joburg East
Another area which offers a great choice of family houses in the R3 million to R4 million range is Bedfordview. Its location on the eastern side of Johannesburg means it provides proximity to Johannesburg, Sandton and the East Rand and is only 15-minutes from /OR Tambo International Airport.
David Ingle, licensee for Seeff Bedfordview says buyers can find a stunning family house or cluster home with up to four bedrooms and a pool in this price range. Bedfordview offers a great suburban lifestyle with good schools and amenities including the Eastgate Shopping Centre and many business nodes around the area.
SEE | Here's why young buyers and families choose to buy property in Hartbeespoort Dam
It is a good choice area for upwardly mobile buyers looking for a luxury family home and a good address in the city. It also has a popular rental market.
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook.
*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
Print
