While Bloemfontein’s residential property market caters for a broad selection of home buyers - with the majority purchasing a home as a primary residence - there are several up and coming areas which are proving popular with young buyers, reports Hennie Aucamp, area manager for Pam Golding Properties.
“Properties currently in demand tend to be full title houses in the price bracket from R800 000 to R1.2 million, as this is the more affordable price range – particularly for younger buyers. However, the rate of conversion of offers into actual sales remains hampered by the fact that buyers in this sector find it difficult to get loans approved and in often do not have sufficient cash for a deposit, whereas in the higher brackets purchasers tend to have cash to buy the property outright or at least provide a reasonable deposit. Coupled with this we are finding that some sellers continue to price their properties too high, instead of pricing them realistically according to market dynamics and what buyers are prepared to pay,” he says.
Despite this, Aucamp says there are several suburbs in Bloemfontein which are performing well. In Langenhoven Park, and with statistics provided by Lightstone, the majority of buyers ie 30 percent, are between the ages of 18 and 35 years, with just over 50 percent of properties sold in the area priced between R800 000 and R1.5 million and with an average price of R1.033 million. Registration figures for the period January to May 2011 (inclusive) reflect a total of 87 units were sold. With a very high rental demand, this suburb is ideal for younger buyers as well as those investing in sectional title units in order to rent them out to young couples or students.
He says in Universitas, a large, centrally located suburb close to all amenities such as schools, university, shopping centres and hospitals and with numerous student houses, 38 percent of buyers are in the age group from 36-49 years. For the same period as above 59 units were sold, with the majority in the same price bracket as Langehnoven Park and with an average selling price of R1.137 million.
Says Aucamp: “Another trendy, new upmarket suburb which has high appeal for the more affluent younger set, as well as buyers across all age groups, is Woodland Hills Wildlife Estate, a very secure suburb with a good mix of properties with modern finishes, all in the higher price bracket. These properties include sectional title and full title homes, vacant erven and properties within a retirement village. During the same period reviewed a total of 67 units sold with a total value of R48. 072 million, however as a number of vacant plots are still in the process of being registered it is estimated that the average price bracket would be in the region of R2.2 million to R3.5 million.
“Another area which is experiencing good interest and selling mainly to buyers relocating from outside Bloemfontein, or to those who are upgrading, is Dan Pienaar – an older northern suburb with spacious homes on large plots. During first five months of the year this area saw 67 units exchange hands with the bulk of properties (55 percent) in the R800 000 to R1.5 million price bracket, and with an average selling price of R1.203 million. Here the majority of purchasers (30 percent) are between the ages of 50 and 64 years,” he says.
Aucamp adds that another suburb which is doing relatively well with a total of 45 properties - with a total market value of R44.3 million - transferred for the calendar year to date (2011) - is Fichardtpark. “Although not as popular among young buyers, with the majority (45 percent) of recent buyers being between the ages of 36 and 49, this area is experiencing a steady demand, with the majority of property (87 percent) in the price bracket from R800 000 to R1.5 million. Factors influencing buyers to purchase in Fichardtpark include the access to schools such as Fichardtpark High School and Primary School, and close proximity to Jim Fouche High School, as well as the Rosepark Life Hospital and a shopping complex.”
Arboretum, one of the smaller, more exclusive suburbs in Bloemfontein with only 20 full title and 101 sectional title properties, has appeal for home buyers due to its location close to the Oranje Meisieskool. Says Aucamp: “With a few offices in the suburb, mainly occupied by some well known legal firms and brokers as well as Vodacom and a bond originator, this area has appeal for those willing to pay a premium for the location. One such development is The Boulders, a very upmarket complex with very modern features and finishes, which is sought after among young, dynamic professionals and other successful business people,” he adds.
For further information contact Hennie Aucamp of Pam Golding Properties Bloemfontein on 051 4301161 or email firstname.lastname@example.org