Johannesburg’s southern suburbs offer a variety of property from freehold houses to sectional title apartments and townhouses, but buyers are mostly looking for affordable homes in the R1.5 million and below price range.
While some of Seeff’s branches in Johannesburg South have seen significant growth in their property market since the beginning year, the Midvaal branch for instance has been negatively impacted by the issue of land expropriation without compensation.
Seeff’s licensees in South Crest, Glenanda, Kibler Park, Oakdene, Meyersdal and Midvaal agree that buyers in Johannesburg South are mostly interested in obtaining property priced between R750 000 and R1.5 million.
Homes with two or three bedrooms and two bathrooms that are either full title or located in security complexes, depending on the specific suburb, are most sought after and can be found in this price range across the board.
With regard to rental property, the price range between R6 000 and R10 000 is most sought after. Rental homes or townhouses in this range usually include two or three bedrooms, two bathrooms and a small garden for children or pets.
Licensees report that sales in the luxury sector are noticeably slower than in the affordable price range mainly due to the fact that many luxury homes are overpriced, and because owners in this segment are often unwilling to grant sole mandates.
Suburb trends in Joburg South
Noticeable trends in Johannesburg South include a big demand for affordable secure living, homes with modern finishes and homes with cottages or granny flats on the same premises.
Suzanne Ridolfi from Seeff South Crest says the rental demand in this area is extremely high and they experience stock shortage in sales stock priced between R850 000 and R1.05 million. While there is no noteworthy new development taking place in South Crest at the moment there is huge demand for retirement villages and affordable secure living, she says.
Russel Theron from Seeff Glenanda says this area has seen substantial growth since the beginning of the year and, while they have sufficient stock levels, many properties in the area are priced incorrectly. He says trends here include a big demand for secure homes, both with regard to townhouses in security complexes and estate homes.
Trevor Sturgess from Seeff Kibler Park says while the market here is slow there is good demand for correctly priced property to the extent that they are experiencing stock shortages in this category. He says high-end homes with modern finishes for under R1.6 million are much in demand in Kibler Park.
Gary du Toit from Seeff Oakdene says business here has been competitive with many new real estate companies opening their doors. The area is also seeing many foreigners willing to pay cash for properties and bonds (with a deposit) are have been easier to obtain this year compared to last year.
Du Toit adds that challenges here include overpriced properties from unrealistic sellers. In some areas, listing prices have gone up by as much as 20% without any reasons to warrant the increases.
Frans van Staden from Seeff Meyersdal says business has been a little slower in February and March, but there has been a slight improvement in April and May since the political situation in the country has “stabilised somewhat”.
Meyersdal has now seen buyers starting to commit more by ‘putting pen to paper’ and making offers on properties. There is also a focus on their rental book as demand is high for good rental properties.
Gregory Libera from Seeff Midvaal says their area consists of many agricultural-type properties and, because of the political turmoil surrounding land expropriation without compensation, offers to purchase have declined while listings have increased.
Libera says there are no significant mid-market or luxury developments taking place in this area at the moment, but that Savanna City which is a low cost project incorporating RDP homes is underway.
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