E-tolls make a quick impact on Midrand property market

Demand for Midrand properties with convenient access to secondary routes or near the Gautrain bus route has climbed steeply since the start of this year.

This home in Carlswald Lifestyle Estate is on the market through RealNet Midrand South for R4,6m.
“The impact of the E-toll switch on was almost immediately visible in this area as well as in traffic flows on alternative routes,” says Emma Ledwaba, owner of the new RealNet Midrand South franchise.
"Traffic on the R55 and other back roads has increased dramatically and buyers are targeting homes near these routes, as well as near the Gautrain bus routes. Sellers in these areas now receive multiple offers that match asking prices as buyers are willing to pay a premium for suitable homes," she says.
Demand as a whole in areas such as Kyalami, Halfway Gardens and Vorna Valley is also higher than last year and Ledwaba ascribes this to the central location of the area relative to Johannesburg, Sandton and Pretoria. "Buyers who travel for work between these centres are trying to limit trips to the minimum, whether on tolled roads because of related costs or back roads because of increasing congestion."
Ledwaba, who has 12 years' experience as an estate agent in the Midrand area and opened her own franchise under the RealNet brand at the beginning of January, says signing three sales contracts within the first week of operation is a good indication of how lively the market is.
"It remains to be seen to what extent the trend will be sustained because an additional factor is that many people review their future plans at the end of the year and for many it includes entering the property market in the new year.
"However, recent commercial development and planned residential developments would seem to indicate that the whole area is gearing up for further growth, which would make property here an attractive investment for home buyers as well as buy-to-let investors."
The local market offers a very diverse choice of properties and prices start at around R500 000 for a one-bedroom unit in a security complex. Prices for units with three bedrooms and two bathrooms in estates now average R1,5m, while free-standing homes are available from around R1,1m. At the top end of the market full-title homes in estates are currently generally selling for between R3,5m and R6m (see photo)
Ledwaba adds that upcoming middle class buyers with joint incomes of around R75 000 per month are responsible for a large percentage of current activity in the market. "Buyers are typically in professions such as IT or engineering but it is interesting to note that in spite of high incomes, around 50% find it difficult to obtain home loans because they are over-exposed to short-term financial obligations. As part of our service, we help such clients to obtain financial planning assistance to improve their credit profiles before applying for finance again," she says.
Ledwaba, who gained wide experience as an agent with an international estate agency group, says she chose to join the RealNet group because it exclusively focuses on the local market and is thus very much in step with local trends.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 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.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us