Great pricing driving recovery in Equestria

The number of home sales and enquiries by prospective homebuyers in Pretoria’s eastern suburbs has risen dramatically, pointing to a turnaround in the local property market.
“We have sold 17 properties in the past 12 weeks and the number of enquiries is very close to levels we experienced before the economic slump,” says Fransiska Schutte of the RealNet estate agency that serves Equestria, Wilgers, La Montagne, Lynnwood Ridge and Wapadrand.
She adds that investors have made a comeback and are typically targeting two-bedroom simplexes with a floor area of up to 90sqm. “It is notable that such buyers are making offers via the internet on properties they have not seen personally. These are pure business transactions by buyers who have done their homework and know what the rand price per square meter in a particular area or complex should be and can make quick, informed decisions,” she says.
“Investors are arguing that now is a good time to buy since they expect prices to start rising shortly. At the moment there is still ample stock but we do foresee that prices will improve as soon as existing units are taken up. Additionally, owners who are not under pressure to sell have started withdrawing their properties from the market if they deem valuations too low. This will lead to lower stock levels and consequent upward pressure on prices.”
At the same time, says Schutte, informed first buyers who realise that it’s bargain time are finding good value in the area. “For example, two-bedroom town houses of about 88sqm and with a garage, carport and private garden in Equestria can now be found for around R550 000 – a price that just a few years ago would have bought a stack unit.”
She adds that there is no doubt that banks’ willingness to once again offer 100% bonds has boosted demand for residential property. “However, buyers are price sensitive. After the difficult period of the past two years, most buyers are acutely aware of how easily they can burn their fingers.”
There was little activity in new developments in the area over the past two years, she says. However, a few developers, notably in the new hotspot of Willow Manor, were not cowed by the adverse economic conditions and have units to sell.
“Most of these units are of high quality and find favour with buyers who are currently also highly aware of quality issues around finishes and are increasingly refusing to even consider developments that do not match their expectations.”
Issued by RealNet

  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