Prime cut prods Nelspruit market

With the prime interest rate at 8,5% a rapid effect can be seen on demand for property in Nelspruit.

Juan Botha, owner of the local RealNet franchise, reports that attendance at show houses increased by 60% and internet enquiries by at least 40% in the first week after the announcement. "The lower rate boosted prospective buyers' confidence in property and those who have been saving for deposits are now in a good position to enter the market."

Buyers in the middle-income groups – especially those newly married or planning families - are now particularly active, he says. “Mostly aged between 30 and 40, they have usually saved a deposit and realise they can now make the transition from renting accommodation to building wealth by owning their own homes. Many have been biding their time and the latest interest rate cut was just what they had been waiting for."

Family homes priced at R850 000 to R1,5m are the most popular targets for such buyers and, says Botha, there is a growing shortage of good quality properties in this price range that is unlikely to be much relieved by sellers lowering their prices to catch the new wave of buyers
“One reason is that most sellers bought at the height of the boom and do not have much leeway to negotiate on price because of outstanding bond amounts. Another is that new entrants to the market do not have much spare cash to renovate and are thus willing to pay a premium for homes that are in top condition."

The areas currently most favoured are Sonheuwel Ext 1 and older, established suburbs such as Nelspruit extensions 4, 5, 10, 11 and 14.

Entry-level properties such as two-bedroom flats are selling in Nelspruit from around R500 000 and, he says, the lowest interest rate in many decades is prompting many young people to also get into gear and buy rather than rent.

Townhouses of around 100sqm and with two or three bedrooms are still available at prices of between R800 000 and R900 000. Top properties are marketed at prices of up to R5m and while stronger demand is also evident in this sector, buyers still have a very wide choice among properties on offer and take their time to make offers, Botha says.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
    • 17 Apr 2018
      By the end of 2017, very few housing markets remained unaffected by the mounting pressure of the prevailing economy and political climate but some fared better than others, especially sought-after, well-situated suburbs like Parktown North that tick the top boxes on buyer’s wish lists.
    • 17 Apr 2018
      With urbanisation at its peak and population density in major cities reaching frustrating levels is it any wonder that more South Africans are choosing to move away from the chaos to a quieter life?
    • 16 Apr 2018
      When you are selling your home, you will have potential buyers coming to view it. During these times, you will need to ensure that each room of your home is clean and beautifully decorated.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us