Buyers hot for big-ticket properties in Johannesburg

The economic and political uncertainties of the past few months have been no deterrent to big-ticket property buyers in Johannesburg’s plush northern suburbs, says Lew Geffen, chairman of Sotheby’s International Realty in Johannesburg.

“In fact,” he says, “this sector of the market really caught fire in October and our Johannesburg offices had an all-time record sales month, with more than R100m worth of sales concluded just in the R6m to R10m price bracket.”

Among the high-end homes sold by Sotheby’s International realty in October were one in Atholl (R7,5m), two in Houghton (R6m and R8,2m), two in Hurlingham (R6,2m and R6,5m), one in Melrose (R9,45m), two in Morningside (R7m and R9m) and one in Sandhurst (R7,5m).

The majority of buyers were South Africans buying homes for their own use.

Asked about the likely reasons for this sales surge, Geffen says that buyers in this sector of the market are increasingly confident that the recession is over and that the economy is set to start gaining momentum in the first half of next year.

“They also foresee that rising demand will start to drive prices up from their current lows within the next 12 months or so, and are taking the opportunity to upgrade to bigger and more luxurious properties before this happens.

“What is more, they are prepared to stake their own money on this view. On average, our buyers in the October big-ticket transactions paid 60% of the purchase price in cash and required bonds for just 40%. This contrasts sharply with the situation in the lower price categories where most buyers require more than 80% of the purchase price and banks are still very cautious about lending.”

Meanwhile, Geffen says, stock availability has improved at the upper end of the market because many property owners who have been sitting on the fence for the past four years are now also keen to move on with their lives - and ready to sell at market-related prices so that they can upgrade in their turn.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us