|Springs, crouched on the eastern border of Gauteng, yet still accessible for those commuting to work in Johannesburg and Sandton, is suddenly starting to come into its own in terms of the residential property market. |
Main driver for the rising interest comes from its availability of new development land at extremely affordable prices and generally still good value for money, says Chris Day, area principal for Pam Golding Properties.
In the middle income areas of Springs, such as Dersley and Selection Park, there are many older houses available, with beautifully maintained and renovated homes with wooden floors and pressed ceilings - all adding value to the properties well priced from the late R300 000's to around R450 000.
"Towns such as Boksburg, Benoni and Kempton Park, which have shown greater capital growth than Springs, are now reaching their capacity with very little land still available for development," says Day.
"With freeways offering good access into Johannesburg and Sandton there's an upsurge in demand among local buyers seeking affordable homes with sound investment potential. The area is also witnessing a great deal of building activity indicating sound local community confidence.”
"For example, in the suburb of Daggafontein - which was formerly a gold mine with its own residential suburb - a new development on the site of the old Recreation Club for mine employees - will be launched in May with full title stands in a secure, walled complex with electric fencing and gated access starting at R450 000 for a stand with a 100sqm unit.
“For investors this is a sound deal as monthly rentals of R3 000 to R4 000 are achievable in Springs, so over a five year period this represents a capital gain of approximately 10 percent per annum."
Day says two separate sectional title blocks of 50 apartments are planned for the same site with entry level prices of R350 000 for a 75 sqm two-bedroom unit.
The second hand market in Springs is also buoyant, with homes priced between R400 000 and R2 million. "The reduced transfer costs also benefit buyers who now receive approximately 5-7 percent 'discount' on their property transactions. Homes in this sector of the market are about 30-40 years old and spacious in common with the building of that time.
In Dersley, PGP has recently set a record price of R870 000 for the suburb with the sale of a residential property and in Selection Park recently sold a home for R1,2 million thus bettering the town’s previous highest selling price of R1 million for a Selcourt property..