'Stable interest rate still favours buyers' | PTA's 15 most popular suburbs + average asking prices

For the sixth consecutive time, the South African Reserve Bank has announced no change to the repo rate, maintaining its multi-decade low of 3.5%. And for the South African property market, this means the exceptional buying conditions experienced over the last year will likely be staying put for some time.

This four-bedroom, three-bathroom home in Woodhill offers a large kitchen, wine cellar and pool. It is on the market for R6.89 million - click here to view.

READ: SARB holds rate steady, warns of upcoming hikes

“It’s not just low-interest rates making this a good time to buy, either,” says Tony Clarke MD of the Rawson Property Group. “There are some extraordinary bargains coming onto the market in the form of distressed properties as well. It’s a sad commentary on the financial pressures on consumers, but we know of at least one bank whose distressed portfolio has literally doubled in recent months.

They’re offering preferential interest rates to qualified buyers to help move these properties faster, making them extremely attractive investment opportunities for those in the know.”

As for sellers, Clarke says competition in sales are still happening – as long as properties are priced and marketed strategically.

According to Lightstone, strong house price inflation of 4.3% for January to February 2021 (latest available data) sees Tshwane retain its spot as the fourth top-performing metro housing market in South Africa.

(Source: Lightstone)

Pretoria's most popular suburbs

In June, Pretoria received more than 9 million page views on Property24 and an overall of 27.3 million pageviews for the 3-month period between April to June 2021.

The average asking price for Tshwane, about R1.3 million during 2020, has seen a 5.7% increase when compared to a pre-pandemic period of 2019. The average asking price in 2015 of about R1.28 million has seen an increase of some 2.3%, over the five years up until 2020, according to listings data on Property24.

The top five suburbs receiving the most interest across Property24 over the last three months are Montana, Silver Lakes, Pretoria North, Mamelodi and Equestria.

With an average asking price of R1 442 668, the suburb of Montana matches the current high for the 2021 market trend, which sees the Average Purchase Price R1.407.071.

READ: The average purchase price South Africans are paying for a home

This is according to Rhys Dyer, CEO of ooba who says recent home buying trends prioritise quality of life as well as working from home.

Properties that offer flexible accommodation that allow for separate workspaces and additional space for families spending more time at home are in demand, he adds.

This home in Lombardy Estate offers two bedrooms, three-and-a-half bathrooms and state-of-the-art kitchen. It is selling for R3.95 million - click here to view.

This is evidenced by double-digit growth in the Average Purchase Price of 16.3% year-on-year for the second quarter of 2021 (Q2 21) compared to Q2 20.  The Average Purchase Price of First-time Buyers showed a 10.9% increase for the same period reaching an average price of R1.104.351, says Dyer.

Dr Andrew Golding, chief executive of the Pam Golding Property, says the ongoing demand for homes is “particularly evident in the lower end of the market, with a roll-on effect upwards, and further fuelled by buyers capitalising on opportunities to make sound, value-for-money acquisitions”. 

Within the most viewed suburbs in Pretoria, buyers looking to enter the market will find good value with entry-level asking priced home in Danville, Atteridgeville, Eersterust and Mamelodi now below R1 million.

For Tshwane’s most popular suburbs, Woodhill has the highest asking price average at R4.795 million.

Echoing the need for correctly priced homes Golding says, “As things generally settle down, and despite the more stringent lockdown regulations currently in place, we are seeing a continuance of activity for correctly priced homes across the various price bands - which naturally varies according to location and market demand - and which is hoped will gather momentum as economic sentiment improves in general.”

This north-facing property in Silver Lakes Golf Estate has four bedrooms, three bathrooms, a study and wooden deck with pool. It is on the market for R3.4 million - click here to view.

However, Montana is the only suburb showing a positive increase in the number of listed properties year-on-year for these popular suburbs, with sharp declines in listed numbers in Mamelodi and the Hills Game Reserve areas, all pointing towards demand for stock.

While we are seeing some stock shortages in certain areas and high-demand price bands, Samuel Seeff, chairperson of the Seeff Property Group reiterates that conditions continue to “largely favour buyers”.

"Stock levels remain adequate and although well-priced property can sell within 8-10 weeks, most sellers still need to cut their price expectations," says Seeff. 

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*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.