Top Performing Suburbs in Johannesburg & Pretoria

News > Market & Opinion - 01 Apr 2019

While looking at past performance by no mean guarantees similar future performance, it can provide investors with an insight into where some of the investment hotspots might be in the year ahead.

According to RE/MAX of Southern Africa statistics for 2018, our network completed the highest number of transactions in Pretoria in and around the suburbs of Constantia Park in Pretoria East, Sinoville, Faerie Glen, Mooikloof, and Arcadia. In Johannesburg, our network completed the highest number of transactions in Kempton Park and Weltevreden Park, followed by Krugersdorp, Alberton and Bryanston.

“The higher the number of transactions, the higher the possibility that prices will climb to match the demand. All of these suburbs, therefore, present possible investment opportunities for those are looking to purchase property in the year ahead,” explains Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.   

According to Lightstone data, sales prices for freehold titles in Constantia Park spiked in 2018, growing from a median price of R1,900,000 in 2017 to R2,100,000 in 2018. Similarly, the number of registrations in this area has also seen a gradual uptick from 52 transactions in 2017 to 58 transactions in 2018.  

Sinoville has experienced steady growth over the last year, climbing from a median price of R1,450,000 for freehold property in 2017 to R1,599,000 for freehold property in 2018. Interestingly, Lightstone’s figures reflect a drop in the total number of registrations in this area from 169 recorded transactions in 2017 to 126 recorded transactions in 2018.

“Apart from these top producing suburbs, Mooikloof Equestrian Estate, The Hills (an eco-estate with wildlife) and other suburbs in Pretoria East that offer farm-style living within reach of the town centre are proving to be popular options in this region,” Goslett suggests.

In Johannesburg, Lightstone data reflects a slight drop in median price for freehold properties within Kempton Park from R1,150,000 in 2017 to R1,100,000 in 2018. However, the median price for sectional titles grew from R390,000 in 2017 to R410,000 in 2018. The number of transactions in this area also grew over from 148 in 2017 to 157 in 2018 for sectional titles, and from 99 to 127 for freehold properties.

Weltevreden Park, however, seems to reflect more steady growth. Lightstone data reflects growth in median price between 2017-2018 from R730,000 to R765,000 for sectional titles and from R1,500,000 to R1,550,000 for freehold properties. The number of registrations also increased from 305 to 329 and from 229 to 251 for sectional titles and freehold properties respectively. 

Wherever you choose to invest, Goslett recommends speaking to a professional real estate advisor who will be able to provide you with up-to-date information regarding the suburb in question. “Purchasing property is a long-term investment decision that ought not to be taken lightly. It is always better to involve an experienced professional who can guide you through the complicated realities of these purchases,” Goslett concludes. 

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