Property is still more attainable and borrowing costs are more affordable than what it has been in close to five decades despite the recent small interest rate hike.
This is according to Samuel Seeff, chairman of the Seeff Property Group, who says that the rate hike increased the base home loan rate to 7.25% which is still about 27% below what it was before the onset of the Covid pandemic.
SEE: Interest rate hikes amid tough economic conditions | Will SA's property market level out in 2022?
"Despite the moderating activity following the buyer frenzy of late last year, the market remains robust with sustained demand in most areas. From the latest Deeds Office data, it appears that monthly transaction volumes have recovered back to the 2019 pre-pandemic levels and the market is only about 7% below the 2015 to 2018 average.
"There is a steady flow of good stock onto the market which, unfortunately for sellers, means market-related asking prices are key to a faster sale and higher selling to asking price ratio, especially in the higher price bands.
"Buyers will need to act quickly though, especially in the lower price bands and high-demand areas where there is no shortage of willing buyers looking to capitalise on the favourable market conditions.
READ: SA's 3 most popular estates and what you can expect to pay
According to Property24 data, these were the most searched suburbs in 2021, with affordable entry-level prices favouring first-time buyers:
Kuils River
Kuils River in Cape Town has a very diverse property market that has remained active despite the current economic conditions, says Herbie de Klerk, Principal of Jawitz Properties Kuils River and Eerste River.
"Properties in the Kuils River/Eerste River caters to those looking to enter the property market for the first time up to the top end of the market."
Kuils River has currently *99 new property listings, according to Property24 Trends Data, with the average asking price for the area being R1.597 million. The average sale price per erf for 2021 was about R1.1 million, while Section Scheme Units for the same period is about R920 000.
Click here to see all the sale and listing price trends in Kuils River
Centurion
Centurion is sought-after for its laidback suburban lifestyle offering buyers access to excellent schools along with convenient access to Pretoria, Midrand and the Johannesburg/Sandton areas.
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 *801 new property listings, according to Property24 Tends Data, with the average asking price for the area being R2 million. The average sale price per erf for 2021 was about R1.88 million, while Section Scheme Units average sale price for the same period is R940 000.
Click here to see all the sale and listing price trends in Centurion
Midrand
Midrand property offers very accessible prices, although luxury areas and demand for luxury homes are growing. Given that it is built around the N1 and is an excellent base for its accessibility for those who work in the area or around the greater Johannesburg and Pretoria metro areas. The market is dynamic with the area home to a mix of residential along with many commercial, business and retail nodes and agricultural areas, says Charles Vining, managing director of Seeff Sandton and Midrand.
A new landmark includes the spectacular Mall of Africa, the largest in Africa which adds to attractions such as the Kyalami Grand Prix Circuit, Country Club and equestrian facilities.
Vining says prices are very accessible; hence it attracts a large number of first-time buyers and sellers. There is a broad choice for buyers and investors, ranging from affordable apartments to sectional title complexes, freehold homes and gated communities. Luxury developments include Waterfall Estate.
Midrand has currently *482 new property listings, according to Property24 Tends Data, with the average asking price for the area being R1.35 million. The average sale price per erf for 2021 was about R988 500, while Section Scheme Units average sale price for the same period is R870 000.
Click here to see all the sale and listing price trends in Midrand
Durbanville
Durbanville has so much to offer family buyers with well-established schools, outdoor activities, new developments such as Grandeur Estate, many great amenities, outstanding medical facilities. Being close to a reputable school has always added great value to any home, says Rowan Alexander, Director of the Cape Town Northern Suburbs estate agency, Alexander Swart Property.
Alexander says being close to schools has raised more values. In Durbanville suburbs such as Clara Anna Fontein, Valmary Park, Eversdal, Durbanville Hills and Graanendal have average values significantly higher than the area average due to a good supply of schools.
Durbanville has currently *141 new property listings, according to Property24 Tends Data, with the average asking price for the area being R2.895 million. The average sale price per erf for 2021 was about R2 862 500 while Section Scheme Units average sale price for the same period is R1.228 million.
Click here to see all the sale and listing price trends in Durbanville
Roodepoort
Roodepoort is among only a handful of areas where you can buy homes ranging from R400 000 to R20 million without moving more than a few kilometres, with a choice of properties ranging from older one-bedroom apartments to modern five-bedroom estate homes with all the bells and whistles.
One of the biggest advantages of buying in the area is the number of freehold properties available for less than R1 million, which has made greater Roodepoort a favourite with young couples, families with children in school and middle-aged couples who are scaling down. In Fleurhof and Florida Lake there are apartments for under R500 000 and in Constantia Kloof, Ruimsig and Wilgeheuwel modern apartments cost between R750 000 and R1.5 million, says Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg.
Underpinning Roodepoort’s stable market is the plethora of amenities available to residents as well as its accessibility from metros like Pretoria, Midrand and Soweto. There are many new malls in the area, as well as several private schools and three private hospitals, a Monash University campus and several golf clubs and other sporting facilities, as well as the world-renowned Walter Sisulu Botanical Gardens, says Odendaal.
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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
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