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
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
        
    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