RE/MAX Suburb Trend Report – Kempton Park

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that Kempton Park is a market that offers a vast range of property to potential purchasers

Area history

Located in Gauteng’s East Rand is the large town as Kempton Park. This area was established in 1903 when Bavarian born Carl Friedrich Wolff sub-divided a section of his Zuurfontein farm into stands for residential use. He named the new village Kempten after the German town of his birth. The name was later changed to Kempton Park - the name it bears today as part of the Ekurhuleni Metropolitan Municipality.

During 1952 construction of Africa’s busiest airport began next to the Kempton Park community, then known as Jan Smuts International Airport, which opened its doors in 1953. In the late 1990s the name was changed to Johannesburg International Airport and underwent another name change to OR Tambo International Airport in 2006.

The proximity to the international airport makes accommodation facilities in Kempton Park ideal for overseas travellers. The area is also close to many other amenities such as large shopping malls, a number of entertainment and sporting facilities and six major high-schools.

Although the area is generally a quiet residential suburb, there is a large industrial zone close by known as Spartan. This zone is home to many chemical manufacturing facilities along with other industries factories, which drive economy in the area. The area is also home to a large coal power plant known as Kelvin Power Station.  The region is responsible for producing about 23% of the Gross Geographic Product of Gauteng, which is Sub-Saharan Africa’s most economically powerful region.

Area property information

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that Kempton Park is a market that offers a vast range of property to potential purchasers. The area caters for all sorts of buyers and is able to offer properties to various sectors of the public. In this way, it is a little more resilient to changes in the market, as its target market covers a broad spectrum of potential buyers.

However, he notes that more recently the buyer demographic of Kempton Park is getting progressively younger as more first-time buyers enter the market looking for affordable housing. This is supported by Lightstone data that shows property in the Kempton Park area appeals to younger buyers. Nearly 40% of the recent buyers were aged between 18 and 35 years old and more than 37% were from the 36 to 49 year old age bracket. It is interesting to note that more than 38% of recent sellers were also from the 36 to 49 year old age bracket.

Approximately 54% of property in Kempton Park is sectional title, with freehold homes making up 45% of the market, and estates accounting for a little over 1% of properties here. There has been an increase in the development of security, eco- and golf estates in Kempton Park recently which has given potential purchasers the opportunity to enjoy a lifestyle that was previously only associated with the northern suburbs of Johannesburg and Pretoria.

Goslett says that an entry level home in Kempton Park would sell for approximately R650 000. The median price of a mid-level home is R950 000, while the area’s most expensive homes that boast top-of-the-range finishes and features, sell for an average of between R4-million and R5-million. The year to date figures show that the average price of a freestanding home was around R850 000 and the average price of a sectional title unit was around R404 000..

Property price trends

Demand for property

Demand for both sectional title and freestanding property is fairly evenly matched in Kempton Park, says Goslett. He notes from November 2011 to date, 226 property transfers took place, with 110 of those freestanding homes, while 116 were sectional title units.

It seems that the element of price is driving demand more than the type of property, as statistics suggest that affordable homes are highly sought-after in Kempton Park. Approximately 40% of all properties sold in the area are in the R400 000 to R800 000 price bracket, followed by the lower to middle end of the market, with around 33% of all transfers taking place in the R400 000 or less price category. Around 26% of properties sold were in the R800 000 to R1, 5 million category, while only 2% fell into the R1,5 million to R3 million price band.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us