New Soweto complexes to meet demand for affordable homes

Demand for houses in the affordable sector of the property market continues unabated.

This is according to Rachel Vickers, Broker/Owner of RE/MAX Kairos, which operates from Jabulani, Soweto, selling affordable homes across Johannesburg, Ekurhuleni, Tshwane and the Western Cape.

Vickers says most of their buyers are between the ages of 25 and 35, in fact the majority of buyers (61%), are between the age of 18 and 35. Around 28% of the buyers are between 36 and 49 years of age, while just 8% range in age between 50 and 64 years, and 2% are pensioners.

The buyer profile of those buying affordable homes varies based on the type of homes being sold and the life stage the family finds themselves in. Most families with a mother and father are looking for freehold full title homes. It is important for them to have reasonably sized stands from about 250sqm.

“Many developments have much smaller stands, anything from 150sqm to 200sqm, but buyers in the affordable market are starting to voice their expectation of larger stands allowing for expansion over the years,” she says.

“Traditional ceremonies cannot be conducted on sectional title land, therefore a family oriented towards the traditions of their tribe will always elect to buy a home that is full title.”

Talking about trends in the affordable sector of the market, Vickers says sectional title is a new concept in the townships, with few complexes represented.

“We are, however, starting to see a significant shift in the appetite for sectional title properties, especially among families with a single parent who works. The benefits of sectional title properties, for both investors and owners alike, are starting to change the mindsets and landscape of affordable housing in the country,” she says.

“In Soweto, for example, there are 166 900 freehold homes and just 973 sectional titles. The upcoming developments within this area, both commercially and residentially, will see over 30 000 homes added to the precinct in the next five to 10 years. This market is booming.”

Vickers says the successful sectional titles being built are predominantly freestanding homes as opposed to apartments or semi-detached homes. The walk-ups are mainly owned by investors and rented to those who are not able to enter the property market as owners.

Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, says South Africans have a deep seated desire to own their own property. Location is just as important for buyers in the affordable space as it is for any other buyers, with proximity to hospitals, transport nodes, retail facilities and schools rated as the most significant.

“Safety for their families, especially their children is also important to these buyers. This is why closed estates that have security features such as a guardhouse and a secure perimeter with electric fencing are sought after.”

Some of the current homes on the market are properties within the Sharon Park Lifestyle Estate in Nigel. This estate is being developed by Johann Grobler of Hlala Kamnandi, who is partnering with Renico Construction to bring freehold homes within an estate setting to the affordable market.

Vickers says buyers are given an opportunity to choose from eight different design styles and 10 different floor plans to not only match their lifestyle, but also their pocket.

“This is the best value for money on the market right now. We have seen growth in the property prices at this estate of 13% year-on-year. The two bedroom, one bathroom homes start at R365 000.”

She says Protea Glen Manor in Soweto is another great development catering to buyers looking for an affordable home.

This development is also being developed by Johann Grobler of Hlala Kamnandi and Renico Construction, and is an exciting sectional title development that offers a selection of two bedroom, one bathroom and three bedroom, two bathroom freestanding homes. The three bedroom homes have an en suite bathroom leading off the main bedroom.

Protea Glen Manor is within walking distance of the Protea Glen Mall and is close to excellent transport routes. The two bedroom homes are selling for R445 000 and the three bedroom homes for R545 000.

Vickers says the best features of these developments are the finishes and important additions that are included at no extra cost, as is the case in some affordable developments. This includes features such as space for a double-door fridge, a stove included, a washing machine point included, built-in cupboards and much more.

“We call these houses a ‘plug and play’ home, meaning from day one the buyer can live comfortably in the home with all the finishes already in place,” says Vickers.

“Many homes in the affordable market are sold as shells and many buyers still need to invest money in finishing certain aspects such as tiling or carpeting, burglar proofing, towel racks, medicine cabinets, curtain rails and the like.”