|The recently opened cloverleaf interchange at Bonaero Park linking Kempton Park with fast track access to the Far East Rand, Pretoria, Johannesburg and Johannesburg International Airport has spawned a new wave of residential development in the area.|
Andre Landman, principal of Seeff Kempton Park and a prominent local developer, reports numerous inquiries for new development land with focus on accommodating expected strong commuter demand. An early spin-off for the agency has come from the recent sale of two development sites in the Pomona area with a price tag of R7 million.
Both sites are for residential development, but Landman says the area, given its location, is shaping up to become a vibrant regional commercial node.
The near three-year-old property boom and the resultant surge in Kempton’s new residential development, spurred to some degree by its plethora of highly desirable gated areas, has, according to Landman, elevated the sprawling city to parity with its traditionally more popular neighbour, Edenvale.
“In the past Kempton was largely the price overspill for Edenvale for those unable to make Edenvale’s prices, but now the price gap, if any, is marginal.” Kempton has, to some extent, also been given the edge by its abundance of raw development land and cross section of prices. Market entry levels on flats and townhouses starts at R280 000 with an average selling price of R700 000 for a three-bedroom unit.
The area also gained popularity from the relative low pricing of new units enabled by the low cost of raw land at that time, but has more recently lost some of that edge because of the higher infrastructural servicing costs of raw land and the extended amount of “red tape” slowing development delivery and inadvertently bumping up holding costs. Landman puts the combined current annual escalation of building costs and servicing raw land at about 20 percent.
Even so, Landman says the region still remains extremely price competitive in terms of new developments. This is proven to some extent by 50 percent of a new 42-unit project, La-Salle, in Van Riebeeck Park, being sold within weeks of its off-plan launch. The 235 square metre house size units have been launched at about R1 million with about 30 percent taken up by investors.
Landman reports a “good” first-half of the year with sales remaining constant and no sign of a slowdown. The trend is expected to hold firm throughout the second half with the only cloud blurring his forecast coming from the national and still unchecked trend of overpricing by sellers. A veteran of similar cycles down the years, he is optimistic that, as the market continues to settle from its extended bull run, sellers and buyers will find more common ground for their expectations in the coming months.
Like most other Gauteng suburbs, Kempton Park has no shortage of buyers. Showhouses continue regularly to pull in up to 15 viewers and if the price is right sometimes three to four offers on the same property.