select
|

Demand is outstripping supply in residential property resales

On average, 30% of residential properties in Gauteng’s northern suburbs which are listed on the Renprop Residential Resales Division’s books are sold before they are even advertised. 

In March, this new division within the Renprop group sold six properties in just as many days. Debbie Justus, manager of Renprop Residential Resales which is focusing on the Gauteng market, attributes this success mostly to the large database of buyers that her division has on their books.
 
She says that while each suburb has its own trend in terms of property price brackets and lifestyle, on the whole a shortage of stock is fuelling demand. “Affordability is suburb driven, and is largely influenced by the buyers needs. Any property in Gauteng that is priced under R1,8million has been selling fast,” says Justus. “Buyers are looking for value for money. In today’s market they would rather purchase a property that needs a bit of work then invest in an immaculate property that is overpriced.”
 
However, Justus points out that despite efforts of the real estate industry at large to educate sellers on correct pricing, many are still not pricing their properties realistically. “The only reason a property doesn’t sell in today’s market is because it is not priced at fair market value for the particular suburb in which it is situated.”
 
According to Justus, the correct pricing of property is even more crucial since more and more buyers are doing their homework, are very well informed and know exactly what the right price range should be for a particular home in a particular suburb. In fact, she says buyers are getting themselves prequalified through a bond originator for home loan finance these days in order to establish exactly what they can afford to pay.
 
Speaking about buying trends, Justus says that many first time homeowners are now looking to upgrade their home, and make up a large percentage of current buyers. In fact, she says around 60% of buyers within the Renprop Residential Resales Division are looking to upgrade, either in size or status or from a sectional title property to full title cluster home.
 
Justus points to Douglasdale in the northern suburbs of Johannesburg as an example of one of the most sought-after suburbs in Gauteng. Highlighted as a hot investment node, prices in this suburb have grown dramatically over the last four years. According to figures sourced from Lightstone, a property statistics and data provider, the average price of a freehold property in the area has increased from just over R1,6-million in 2010 to R2,064-million in 2014. The data shows that most active price brackets in this suburb are between R800 000 and R1,5-million.
 
“Properties within Douglasdale are in high demand due to the amenities in and around the suburb. In line with demand for secure living, properties in Douglasdale are also mostly situated within secure estates, which adds to the area’s appeal,” says Justus.
 
Homes in Douglasdale spend an average of just four weeks on the market before selling, with a difference of 10% to 15% between asking and selling price. Justus says that buyers in Douglasdale are a mix of professionals and family buyers and says that Renprop Residential Resales is currently experiencing a stock shortage in the area due to the high demand for homes here.
 
Other hot investments nodes around Gauteng include Bryanston – which always has been and always will be a sought-after area according to Justus, Lonehill, Paulshof, Sunninghill, Northriding, Boskruin, Bromhoff, Sundowner, Randpark Ridge as well as The Parks areas, Melrose Arch, Houghton, Riverclub, Duxbury and Morningside – another area experiencing high demand and a shortage of stock.
 
These days the price and location of a property have to be right. “Buyers are no longer suburb loyal like they used to be - they are looking for a property that suits their needs, is well located and which offers the best value for money,” Justus concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
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.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK