select
|

A good time for suburban home-owners to subdivide

If you own a large property in a desirable older suburb, now would be a good time to subdivide and sell part of it, says Richard Gray, CEO of Harcourts Real Estate.

Factors in favour of such sales, he notes, are the renewed popularity of established suburbs that offer a wide range of amenities in close proximity to one’s home, especially among “millennial” buyers in their late 20s or early 30s.

“These buyers do also tend to prefer modern homes, but they are increasingly moving away from gated estates and security complexes on the margins of cities and looking for smaller stands in older, more central suburbs where they can build their own smaller, more energy-efficient homes in manageable gardens, avoid long commutes and enjoy having a variety of shops, good schools and recreation facilities on their doorstep. 

“In fact, we would say that the owners of empty or sub-divisible stands in the most sought-after areas are in the pound seats right now, as land prices in these areas are already well ahead of where they were five or 10 years ago, demand is high and most local authorities are keen on the densification of older suburbs.”

Gray says areas currently favoured by millennial buyers include:

*Douglasdale close to Sandton, where stands of between 400 and 500sqm are available at prices between R450 000 and R650 000;

*The Northcliff area (R600 000 for 450sqm);

*Muizenberg in Cape Town (R300 000 for 300sqm);

*Parklands (R500 000 for 350sqm); and

*The Bluff suburbs in Durban (from R700 000 for 700sqm)

Among more mature buyers keen to design and build their own homes, the most popular choices include suburbs such as:

*Morningside close to Sandton, where stands are priced at around R1m per 1000sqm, but most are larger;

*Hyde Park (R1,75m for just under 500sqm);

*Bedfordview (R1,1m for 1000sqm with a view);

*Constantia in Cape Town (R4m for 1200sqm);

*Bloubergstrand (R3m for 500sqm); and

*Durban North (R2,5m for 1300sqm).

“Of course sub-division can bring the sellers the additional advantages of increased security, lower maintenance costs and relief from rising property taxes,” he says, “but they do need to think about who will be paying the costs of subdivision and the installation of services on the new stand before they go this route.

“And our advice is usually for the seller to go through the process, carry these costs upfront and then to sell the subdivision at a ‘build-ready’ price. Otherwise, the sale is likely to be made conditional on the buyer obtaining the right to subdivide – and possibly to rezone - the property which means it will probably take a long time to complete and could fall through altogether.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK