select
|

Low maintenance and less traffic the lures for big ticket buyers

The average home sale price in Johannesburg is now around 5% above the national average – and it’s mostly because volumes have picked up at the upper end of the market.
 
So says Lew Geffen, chairman of Sotheby’s International Realty in SA, who is “very bullish” about the prospects in 2011 for the market sector in which his company operates, where the average sale price is around R2,5m.
 
“In 2010 we saw volumes increase in this sector by 30% and prices move up by around 8%, with the third quarter being particularly encouraging, and we expect this positive trend to continue in 2011.
 
“The market has really bottomed out now, lending has loosened up somewhat and pent-up demand among those looking to upgrade is starting to come through. What is more, the buyers coming into the market now are real quality – and we are seeing a bond application refusal rate of just 4%, compared to an average of 15% historically.”
 
Looking at specifics, Geffen says that apart from access to finance, he expects the two major market drivers in 2011 to be property operating costs and convenience. For a start, his sales records for the past 12 months reveal a clear and growing preference among buyers for suburbs – and particularly gated communities – comprised of lower-maintenance properties on smaller stands, even at the upper end of the market.
 
“In Johannesburg, for example, there is much less demand now than there was two or three years ago for trophy properties on very large stands in suburbs such as Hyde Park and Sandhurst – although the resistance does not appear to be a question of purchase price. Wealthy buyers are often quite prepared to pay as much for a modern, low-maintenance property in a top estate as they would for one of these older suburban mansions.
 
“At issue is the time required to manage the upkeep of a very large property, and the ongoing costs of running a large establishment. Estates offer the benefits of shared resources as well as managed services, which not only frees homeowners from individually having to oversee the upkeep of the grounds, but also means that by sharing the cost they can, for example, acquire really high-tech security systems.”
 
Another big trend, he says, is relocation to avoid traffic congestion and reduce commuting times and distances. “And this will definitely benefit those traditional suburbs and the newer mixed-use estates and cluster complexes that offer proximity to good schools, shops, sports facilities and entertainment venues, particularly if they also enjoy good Internet and cellphone coverage to enable telecommuting and the establishment of home-based businesses.”
  
ISSUED BY
SOTHEBY’S INTERNATIONAL REALTY


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    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