- The housing market is expected to show resilience, as it has done historically, despite the current recession in South Africa.
- The younger generation is eager to invest in property.
- Gauteng is the strongest area for real estate in South Africa in terms of realistic prices and stability.
- Hotspots offer value for money and good investment options.
Has the South African recession affected the local housing market? It appears likely that the housing market will continue to show resilience based on the younger demographic eager to buy property and a financial sector with an appetite to extend mortgages.
“With a younger generation eager to enter the property market and an up-and-coming segment of the market which has newfound wealth and a desire to invest in real estate, we hope to see a gradually improving housing market,” says Dr Andrew Golding, Chief Executive for the Pam Golding Property group.
Who is buying? “With household finances under pressure and a young population, we have already seen the lower end of the housing market experience an uptick, particularly as the average price for first-time buyers is estimated by ooba at R954 000,” says Golding.
Which region is performing regards to residential property sales? FNB’s estate agent survey shows that the Gauteng housing market offers the most realistic prices and stability.
Gauteng hotspots offering good value for money
Where are the Gauteng property hotspots? Suburbs offering good value for money – including for investment purposes – are Sandton, Morningside, The Parks (comprising Parkwood, Parkview, Parkhurst and Parktown North) and, for top-end homes, Westcliff and Bryanston.
What are the price points in Gauteng? Northriding and the greater Fourways area continue to be sought after as they are very affordable and close to major roads, highways, shopping centres, excellent schools and hospitals. Here it is still possible to buy property priced from R700 000 for sectional title apartments and from R1.8 million and R2 million for freestanding homes – including cluster homes.
What suburbs are best for property investment in Gauteng? Fourways, Sandton, Sandhurst, Hyde Park and Houghton are favoured by business executives mentioned above. Brand new residential estates and developments in Dainfern Estate in Fourways and nearby Blair Atholl are also popular. Illovo, Inanda and Kelvin are good options because they are close to the Sandton CBD and OR Tambo International Airport. It’s also worth looking at The Regency in Pretoria.
Which developments have unique appeal in Gauteng? In Fourways, Dainfern Square Luxury Apartments is leading Johannesburg’s ongoing expansion into the “new North”. Set to become one of the most desirable addresses in the city, with apartments priced from R1.75 million to R3.85 million, it is ideal for investment, permanent residence or partial use.
What are the most popular developments in Gauteng? Sandton Skye is one example, and has the benefit of hotel-like living. This is the second tower in an already proven development. Park Central – currently under construction and set to become the tallest building in Rosebank – offers ground-breaking architectural design that will make it the most iconic residential building in Johannesburg.
What about rental returns? In Hyde Park’s One97, some apartments are offering a guaranteed rental return of 9%. Capital on the Park in Sandton also offers a guaranteed rental return on some units, plus buyers have access to all the hotel amenities. One on Whiteley in Melrose Arch enables investors and buy-to-live purchasers to enjoy the live, work and play lifestyle of the Melrose Arch precinct.
One on Whiteley 3D rendering of the courtyard view
One on Whiteley street view
It’s a buyer’s market. Now is the time to invest in property so take the first step by finding out how much you can afford. Use our Bond Indicator to see what you qualify for then, when you’re ready, get prequalified or apply for a home loan with South Africa’s largest bond originator ooba today.