The sought after eastern suburbs of Pretoria are seeing an increasing number of buyers looking for estate properties with super tight security and the money to pay for it seems to be no object.

“Security is a prime requirement for homeowners in the eastern suburbs of Pretoria,” says Martin Potgieter, broker/owner of RE/MAX Jacaranda.

“People do not only require a home in a secure complex, they also want 24-hour guards,” he says.

“There is a definite movement to security estates, as is evident in the upsurge of such developments in the area such as Boardwalk Manor & Meander, Woodhill, Mooikloof, Silverlakes.”

Talking about market trends in the area, he says that while everyone has been affected by the downturn, demand for properties within the security estates has never decreased. Buyers, he says, are however mostly cash buyers. “Prices in the estates have decreased slightly, by a maximum of 10%, whereas prices in ordinary suburbs have fallen by about 20%-25%.”

Retha Schutte, manager for Pam Golding Properties (PGP) in Pretoria, agrees that security estates are very popular right now and security is definitely a key buying factor. “At Woodhill Golf Estate, homes have shown capital growth that far outweighs other areas and even other security estates. This growth is between 15% and 18% year-on-year and has been achieved over the past few years.

According to Potgieter the buyers mix in open areas is made up of young couples in their early 30s looking for a first home along with older couples wanting to scale down. In the estates the buyers are mostly made up of buyers in their late 30s to late 50s. “Money is no object for these buyers, for whom lifestyle and security is a prime concern,” he says.

Roma Naude, broker/owner of RE/MAX Property Merchants, which concentrates mainly on security estates in the eastern suburbs of Pretoria, says bargain properties have already been snapped up, but that her agents in the upmarket estates are getting more and more enquiries from purchasers looking for expensive properties in the R10m or more price bracket.

She says although sale volumes have seen a steady increase since last year it is still not comparable to the peaks achieved in 2007. “It seems as if the general demand is also increasing, but that the strict criteria of the various financial institutions still result in a lower percentage of loan approvals. Asking prices for properties are still too high,” she says.

Looking at specific price ranges in the east of Pretoria, Potgieter says entry-level homes range from R750k to R900k while mid-level homes often sell between R1m and R1,6m, depending on the area. Average estate pricing starts at R1,6m and ranges up to around R2,1m with the most expensive estate homes priced around the R7,5m mark.

In Potgieter’s view, the property market in his areas over the next 12 to 18 months will see the number of properties in distress increase, as he says the effect of the recession is only now being really felt. “Sellers who are not in financial difficulties have taken their properties off the market as they are waiting for prices to increase before they sell. According to the press, property values are increasing, therefore sellers are prepared to wait to achieve their prices. I expect that in early 2011 we should see a significant increase in prices of around 15%.”

Overpriced properties, says Naude, are a direct result of the past property price hikes. “Owners who bought during the boom times who now wish to sell still want to make big profits.”

Her advice to sellers is to rather come on to the market with the right selling price than lofty aspirations to achieve a better price. “These sellers will often land up with their property on the market for two years and in the end selling for the initial price that an agent valued the property for,” she says. – Eugene Brink

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