11 May 2012
Property prices in South Africa according to mortgage originator ooba showed a positive year-on-year (y/y) growth of 5.6 percent in April.
The mortgage originator points out that April was the sixth consecutive month of positive y/y property price growth.
The April oobarometer price index reveals that the average house price rose to R870 070 from R823 483 a year earlier and the average purchase price of the first-time buyer recorded a y/y growth of 8.2 percent to R676 837 from R625 252 in April 2011.
Saul Geffen, chief executive officer of ooba, explains that the growth in the first-time buyer purchase price seems to be supported by sustained first-time buyer activity.
He says 50.9 percent of the applications during the month consisted of first-time buyers compared to 47.7 percent in March.
“April was also the 12th consecutive month of positive year-on-year property price growth for first-time buyers.”
The average approved home loan size increased by 3.5 percent y/y with a month-on-month increase of 1.3 percent.
Geffen notes that the consistent property price growth and the improved bank approval rates suggest improved confidence in the property market as they have seen 45 percent growth in its approved home loans for April.
The latest Absa House Price Index reveals that house prices are set to deflate as a result of developments in nominal prices and headline consumer price inflation towards the end of 2012.
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Lanice Steward, managing director of Anne Porter Knight Frank, says there is a strong likelihood that South African residential property is now into a recovery phase as the FNB Property Barometer shows.
Steward says the report indicated a further, albeit slight, acceleration in home price growth from a revised 7.1 percent y/y for February to 8.6 percent y/y for April.
Furthermore, the report reveals an increase in demand for property with the South African average house price growth for 2012 expected to be 6 percent, she says.
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Whether property prices are declining or increasing, buyers are seemingly still purchasing homes despite the price tag in some areas.
Available directly from the developer, the Signature Series homes are luxuriously finished, making optimal use of the plot sizes and their orientation on the estate, says Property manager Louise van Aarde.
She explains that Pearl Valley have 284 houses completed to date and 66 sectional title units.
Prices vary on the estate as there are various types to choose from.
Plots are priced between R1.8million and R3.5 million, golf lodges R2.3 million and R3.5 million, lake homes R4.5 million and R7 million and villas are priced from R7 million to R22 million.
Pearl Valley Golf Estates reports that the premier lifestyle location has seen an upturn in the residential property market in the past six months with sales achieving prices as high as R13 and R15 million.
Van Aarde says sales growth indicates confidence of investors with international buyers from the Scandinavian countries choosing the estate as their home.
She says the recently sold R15 million home is the highest selling property on the estate to date.
It has five bedrooms with views over the 18th hole.
Apart from its internationally renowned Jack Nicklaus designed golf course, facilities at Pearl Valley Golf Estates appeal to the modern lifestyle that include a sanctuary-like spa, advanced wellness gym, nature trails, horse-riding, an outdoor boma and a scenic, heated pool area with its pool bar, members lounge and the Valley Restaurant.
Buyers at Pearl Valley Golf Estate can either purchase vacant land directly from the developer or buy existing homes from either the developer or a re-sale.
Plot sizes on the estate ranges from 500 to 2 800 square metres.
Pam Golding Properties (PGP) reports that Silversteen Estate in Constantia Valley offers good value for money to buyers and investors.
The secure estate consists of 13 homes along a single access road occupying an elevated position on the slopes of Ou Kaapse Weg, with views across the valley and False Bay. Silversteen was developed about 10 years ago and many residents are established families, therefore, there is seldom an opportunity to purchase a home at the estate.
PGP’s area manager for the Southern Suburbs, Howard Markham, says market statistics confirm the low turnover of homes in Silversteen Estate.
According to Propstats figures, two properties have changed hands in the past three years, a vacant erf of 1 550 square metres sold for R3.32 million in October 2009 and a four bedroom home measuring 1487 square metres sold for R8.25 million in August 2010.
Markham says the low turnover figures are hardly surprising, given the appealing lifestyle on offer in Silversteen - why would anyone want to sell their home?
Demand for property along the KwaZulu-Natal shoreline continues to grow as buyers seek areas that offer security coupled with aesthetic appeal, says John Pechey, broker/owner of RE/MAX Dolphin Realtors.
He says Ballito is being recognised as one of the fastest developing regions in South Africa and its business sector has grown into the leading financial hub of the Northern KwaZulu-Natal coastline, which has attracted many buyers to the area.
South African holiday makers, foreign tourists and property investors buy into the area while the majority of buyers are young professionals with 25 percent being investors looking to buy a second home.
Inland properties start from R1.1 million to R3.5 million, while beachfront holiday apartments range from R2.5 million up to R11 million, depending on what the property offers in terms of location and features, says Pechey.
RealNet Wilgers says Wapadrand Estate on the northern slopes of the Bronberg mountain range to the east of Pretoria, has proven its popularity among residents, as more than 30 percent of owners have lived in the estate for more than a decade.
The estate used to be an open suburb and it has since evolved into a fully-fledged secure area with controlled entrances at Lynnwood Road and Hans Strydom Drive, says Fransiska Schutte, principal of RealNet Wilgers.
Prices of sectional title townhouses in the estate start from around R600 000, while bigger units reach selling prices of about R1.2 million and freehold homes are priced between R1 million and R3 million.
Schutte says buyers of these estate homes include young adults and pensioners currently who represent 15 percent of buyers, while 70 percent of sales are evenly split between buyers between the ages of 36 and 49 and those between 50 and 64.
The abundance of indigenous trees and bush vegetation as well as views from properties on the Bronberg certainly adds to the estate's allure.
The estate has easy access to both the N1 and N4 highways, she adds. - Denise Mhlanga
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