Comments Dr Andrew Golding, CE of the Pam Golding Property group: “During the months of July and August 2011 we have achieved a number of ‘big ticket’ sales in Johannesburg’s affluent Northern Suburbs, which have further boosted the region’s sales turnover.”
These include the following sales successfully concluded by Pam Golding Properties (PGP): a home in Westcliff which fetched R35 million; a house in Bryanston which sold for R30 million; homes in Sandhurst which achieved prices of R23.68 million and R16.3 million respectively; and a home in Houghton Estate which was sold for R16 million. In addition, PGP sold an apartment in Melrose Arch for R22.2 million.
Adds Dr Golding: “Independent sales data reveals that over the past 18 months,approximately 25 percent of all Northern Suburbs sales in the upper end of the market – which in the current market is from approximately R15 million upwards - were concluded by Pam Golding Properties, which is more than double that achieved by any other agency. This is despite the fact that overall, and during this period, the Northern Suburbs experienced a drop-off in sales across all price bands - indicating that in addition to increasing sales we have gained market share as both buyers and sellers continue to favour reputable brands coupled with quality of service,” adds Dr Golding.
Jonathan Davies and Rupert Finnemore, joint area managers for PGP’s Hyde Park office which operates in the Northern Suburbs, comment that those currently seeking luxury homes are mostly local purchasers, although they report some buyers are those relocating back to Gauteng from the Cape Town area, while others are from African countries such as Kenya, Nigeria and Zimbabwe.
Says Davies: “Our buyers are mostly individuals purchasing a primary residence, with some corporate buyers. There is a growing trend towards ‘new money’ or recently acquired wealth flowing into the market via those wanting to acquire residential property at the ‘best’ address available. Location remains key and a prime Hyde Park or Sandhurst address remains highly sought after, however we note that buyers are finding value in the upmarket area of Bryanston, which is also centrally situated and conveniently located in regard to the Sandton CBD.”
Finnemore adds that the top end of the market remains sustainable due to its resilience as sellers are in a position to sit out any downturn in the market and as a result, properties tend to maintain value despite challenging market conditions. He says coupled with this, many purchasers are able to provide a high cash to loan ratio.