Gauteng property in short supply.
Category Property Market
Gauteng is experiencing significant growth in the demand for residential property, to the extent that in many areas demand for homes is outstripping supply.
This is according to Dr Andrew Golding, chief executive of the Pam Golding Property (PGP) Group, who says significant infrastructure development, in addition to both residential property and commercial property development, is underway in Gauteng. He says this, plus the strong demand for homes in the region, would appear to indicate positive future growth in property transactions and prices.
Dr Golding says the residential property markets in Johannesburg and Pretoria have been more than resilient over the last 12 to 18 months, which includes renewed activity in the top-end of the market, with house prices in this sector showing notable growth.
“While the top-end of the Gauteng market has always held its own, it is evident that savvy property investors have recently started to identify further opportunities to both buy and sell residential real estate in this sector, with many expanding their property portfolios.”
PGP agents in Gauteng have noted increased interest from some foreign investors looking to take advantage of what they consider value-for-money opportunities in Gauteng. This has been encouraged by the depreciating value of the rand and increasing African wealth. Dr Golding says many of these investors are from other countries on the continent, and they are looking to secure residential property in South Africa, especially in Gauteng.
“We commented earlier this year that the Gautrain has been a catalyst for further development and growth in the region, and has largely had a positive impact on property prices in areas where the stations are situated.” He says this has been confirmed by a recent report published by property research company Lightstone, which shows that properties close to the Johannesburg, Pretoria, Rosebank, Hatfield and Sandton Gautrain stations have significantly benefited from having Gautrain stations situated nearby.
He says PGP branches in Gauteng, such as Hyde Park and Fourways/Dainfern, have consistently been the top performers within the Pam Golding Properties group over the past year with regard to number of sales, as well as sales turnover. Other PGP offices such as Pretoria and Centurion have also had an impressive 2014, he says.
In October, the PGP Hyde Park office succeeded in achieving a turnover of R185 million, which equals the branch’s best ever October performance prior to the slowing of the residential property market in October 2008. While some of Cape Town’s seafront properties may be fetching record prices, the number of property transactions in Johannesburg are significantly higher than its coastal counterpart, says Dr Golding.
PGP Fourways/Dainfern is an example of another Gauteng office that has been a consistently impressive performer within the group. Fourways reports a 47 percent improvement in sales turnover this year when compared with 2013, and a 29 percent increase in the number of units sold. This is a reflection of the attractiveness of the area offering a work, play and live lifestyle. In October, the office achieved sales of over R100 million, which was 75 percent over budget and a new record.
“Properties in estates across Gauteng are in particular demand, as are apartments offering a convenient and colourful urban lifestyle in centres such as Sandton and Rosebank.” He says clusters and townhouses are also ever popular within the residential suburbs - providing a secure lifestyle in a community environment with easy access to amenities and facilities.
Dr Golding says the Sandton CBD has seen considerable densification in recent years and the development of a number of high-rise executive apartment blocks. He says apartments in the Sandton CBD are priced from R1.7 million and have been consistently listed in the high R20 millions. He says development in the area is ongoing, with office and retail property worth billions of rands continuously being built and road and transport networks upgraded.
According to Dr Golding, Johannesburg and Pretoria are experiencing a surge in developer interest, with a range of products being constructed, from small- to medium-scale developments of 10 to 50 units to large-scale 150 units, as well as offerings in multi-million rand schemes.
After 2009, he says most small to medium-sized developers in the northern suburbs adopted a wait and see approach to the market. The renewed interest they are showing in the market is a further indication of confidence that investors have in the future of residential real estate in the region. Dr Golding says a number of significant residential property and mixed-use developments are now on the horizon.
The Steyn City mixed-use development in the Fourways area that will be launched in March next year is one such example of a large development that is underway, but there are a number other initiatives that are also coming on stream shortly. These include the prestigious Park Central in Rosebank, Melrose Arch, where an additional residential phase is being developed; The Regency in Menlyn, Pretoria and Eagle Canyon in Roodepoort. These represent some of the most exciting initiatives that we have seen in this market in South Africa for some time, he says.
It is not just Johannesburg that is seeing considerable growth: with massive cranes rising into the sky, the Menlyn area east of Pretoria is starting to resemble Sandton of the early- to mid-2000s. Just as the cranes signified robust development in Sandton a few years ago, they are an indication of just how rapidly the Menlyn node is growing at present. To meet the expected future demand for accommodation within Menlyn, a new luxury high-rise apartment development, The Regency, is being built in the Ashley Gardens area, close to Menlyn Maine. The 147 apartments are priced from R995 000 to R2.3 million.
“We are confident that the economic powerhouse of South Africa is in the midst of a positive housing market resurgence and we feel that the overall outlook for the residential property market in Gauteng is bright.” www.property24.com
Author: Property24.com
