BLOEMFONTEIN (November 19) - The property market in Bloemfontein – the City of Roses - has notched up a solid performance in the past year, with prices of residential property growing by about 15%.
That’s the news from Riaan Malan, principal of the local Aida franchise, which recently expanded into new premises to accommodate an agent complement of 26.
“There is a buzz in this market,” he says. “The residential sector is very active and is being supported by strong demand in the commercial sector. New office blocks are a feature in Westdene, for example, while the new Waterfront Mall next to the rugby stadium opened in August.
“We are also seeing strong growth in demand for retail businesses such as restaurants and in services industries. Buyers are typically middle-aged residents who are using severance and pension packages to set up their own businesses.”
The residential entry level in Bloemfontein, he says, is now around R400 000, which will buy a two-bedroom apartment. Three-bedroom units command prices of around R750 000, which will also buy a very basic three-bedroom house with a single bathroom and in need of some revamping.
Malan says the strongest demand currently is in the region of R1,2m, while there is good supply in the R2m range.
“Top prices for existing properties reach around R6m and we are still seeing demand at these levels. The market did dip slightly in response to the increases in interest rates but buyers seem to have become accustomed to the new levels already and activity has picked up again.”
Malan says further evidence of confidence in the market is that new owners are commissioning the building of luxury homes to the tune of R10m and more.