Brisk demand now for bargains in Middelburg
- 09 Oct 2009
The residential property market in Middelburg in Mpumalanga is currently flush with bargains – but the market is showing definite signs of turning.
Susan Muller, owner of the local Chas Everitt International franchise reports that between 25% and 35% of property now being sold through her office forms part of insolvent estates. “Many of these properties were bought by investors who were over-exposed and who could not keep servicing bonds. In some cases up to six properties are offered in one insolvency,” she says.
And there is brisk demand for such properties since asking prices are as much as 20% below market value, she adds. Most buyers are people who can put down a 10% deposit and are buying for own occupancy.
This growing demand is expected to lead to rising prices. Muller says lower interest rates, lower deposit requirements and announcements that 100% bonds are once again available have created confidence in the market and are further stimulating demand.
“The market is now more accessible for especially first-time buyers and we are seeing more interest in this sector. We are also, co-incidentally, seeing increasing numbers of first-time buyers who have saved a deposit, in stark contrast to just a few months ago when many offers to buy fell through because buyers could not obtain bond finance without a deposit,” she says.
Prices in the town range from R320 00 for 44sqm townhouses to about R2m for luxury properties. The greatest demand is currently for properties priced below R750 000.
Muller adds that demand for rental units is still brisk. Rentals of around R6500 per month are being achieved for average three-bedroom family homes, and there is very little stock available for less than R5000 per month – the category in highest demand.
Issued by Chas Everitt International