Cautious optimism about Pretoria residential property market

The residential property market in Pretoria and Centurion is showing signs of a slow recovery with well-priced properties, especially in golf and security estates, remaining in demand.

Furthermore, the market for top-end, upmarket homes is reflecting gradual growth.

“While we expect the market in the area to remain relatively static for the remainder of the year, some areas are showing some signs of recovery,” says Retha Schutte, regional executive for the Pretoria region of Pam Golding Properties (PGP). “It is too soon to tell whether this is signalling a return to growth in the Pretoria market, but we are optimistic.”

“Good news for the area is that the City of Tshwane Metropolitan Municipality recently announced that it will raise R10 billion over the next five years to fund infrastructure, which is likely to stimulate the local economy and have positive spinoffs for the residential property market. The banks have also relaxed their lending criteria to some degree, which is placing some households in a better position to purchase property.”

Bond originator Ooba furthermore reports that there were several positive indicators for the residential property market in South Africa including year-on-year growth in property prices and an improvement in the numbers of first time homebuyers. Ooba noted that the average national purchase price in July 2012 was R846 863, up 3.1% from R821 579 in July 2011. However, it pointed out that month-on-month purchase price statistics did indicate a slowing in the growth of property prices.

Schutte says that there are areas in Pretoria that are performing strongly, even in the current subdued economic climate. In February (2012), property research organisation Lightstone named Woodhill the top golf estate in terms of value for the year 2011. One of the most upmarket golf estates in Pretoria, the area gained an annual appreciation in property price of 34%. It is worth noting that this increase was for properties in the R2.4 million to R.4 million bracket. Most of the properties overlooked the greens or were situated around the golf course.

“This increase was powered by high demand from buyers seeking properties in this price bracket and affordability was a major driver,” adds Schutte. “The proximity to major routes and amenities, excellent security, the golf, tennis and squash courts, country club and the nearby Woodhill College also stimulated interest in the area.

“Woodhill is not the only golf estate doing well,” adds Schutte. “Security and golf estates throughout the Pretoria region are in high demand, particularly as security remains a factor of prime importance to residents. I anticipate that estate properties such as this will remain sound investments well into the foreseeable future.”

According to Schutte, in recent months PGP has also seen an increase in activity in areas such as Waterkloof Ridge, Waterkloof and Brooklyn. These areas are among the most exclusive residential suburbs in Pretoria and are home to embassy personnel, high profile business executives and sports celebrities. A shortage of stock in certain price bands (i.e. between R2.8 million and R4.5 million) is being experienced within these areas, which PGP views as a positive indicator for the property market.
Schutte says that the rental market in Pretoria and Centurion has been performing well. A high demand for rental properties across the Pretoria region has been noted and this is pushing up rental prices across the board. “We are consequently seeing the buy-to-let market slowly but steadily coming back into its own as investors demonstrate their confidence by re-entering the market,” she observes.

“There are challenges being experienced in the residential property market countrywide and this is no different in the Pretoria and Centurion areas. But, just how does this affect the buyer and seller? In my view, approaches to today’s property market need to be practical and level-headed. Both buyers and sellers are advised to seek sound advice that will enable them to make informed decisions around comparative values, the state of the market and future projections.”

There is always much debate around whether sellers should grant property agents sole mandates. In Schutte’s view a sole mandate generally ensures a better marketing plan, a more concerted effort, wider media exposure and a much greater level of commitment from the agent. Competition is healthy, but it needs to be between interested buyers rather than among estate agents, she says.

“Selling a property is a process, and price counselling from an experienced and responsible agent is vital. From the buyer’s perspective it is imperative to explore the market thoroughly, setting aside time to visit properties, while gleaning as much market-related information as possible. A practical approach to buying and selling property is therefore essential,” she concludes.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us