Bloemfontein residential market has weathered the storm

The suburbs north of Bloemfontein, particularly Dan Pienaar, Langenhoven Park, Westdene and Universitas, have traditionally been the more expensive of the Bloemfontein residential precincts, often with prices as much as 35 percent above those of homes to the south of the city.

However, despite recent price rises of 3 percent to 4 percent a year, homes throughout Bloemfontein are still among the least expensive of all the major cities in the country, says Henry Peter Johnson, the Rawson Property Group’s franchisee for Bloemfontein north.

“In the areas that my franchise serves there are about 20 000 homes, almost all freestanding, and their average price is R1.2 million with the full range being from R500 000 to R1.8m. We are also marketing a farm to the north of Bloemfontein for R3.8m, but this is exceptional. In Bloemfontein south, the average price is R700 000.”

Johnson says the residential property market in Bloemfontein is being stimulated by a steady influx of new arrivals to the city and by ongoing developments, and this franchise is involved with several of these.

Two current developments are Lilyvale, a townhouse complex with about 300 detached and semi-detached homes, and Seven Dams, a retirement village where the entry age is 50. This has freestanding face-brick cottages with about 80 m2 of floor area.

Johnson says demand for homes in Bloemfontein north is strong and there is still a fair amount of stock available – his team has about 35 houses for sale right now.

“The limiting factor, however, is the availability of bonds. Many of the potential buyers are hoping to get 100 percent or even 110 percent bonds, but these are rarely awarded and many simply do not have the 5 percent, 10 percent or even 15 percent deposit, without which the banks will often not even consider a mortgage bond. A fairly high number of applicants have impaired credit records, so only 20 to 30 percent of applicants in this area end up getting bonds, despite the preliminary pre-qualifications assistance,” says Johnson.

“On the positive side, there are clear signs that the market has now weathered the recession and is moving upwards, with further price rises likely. This means that anyone buying now will be acquiring appreciating assets, and those considering buying should get their ducks in a row and act as soon as possible.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us