There has been a slight uptick in buying activity in the suburbs that make up Johannesburg's "New South".
So says Colin Rodrigues, principal of leading local agency Homenet Delta, who notes that prices in the area have stabilised and are set to stay firm as property market sentiment slowly turns positive.
"Enquiries from the Indian community in particular have picked up dramatically with many sounding out numerous possibilities before buying."
The rental market in the area is booming. Flats in the area typically cost between R500k and R1,2m and rent for between R3k and R6k a month.
In the freehold market, properties priced between R1,5m and R2m are selling well at present.
An example is the Aspen Hills Estate which has fared well and is now due to launch its second phase. On completion, the mixed-use estate will comprise roughly 1,000 freehold unit packages including cluster homes and townhouses. Stands measure 500sqm and prices range between R2,5m and R6m.
Other successful developments in the area include Bassonia Estate, Bassonia Rock and the Meyersdal Eco Estate.
Rodrigues acknowledges that the instance of foreclosures, auctions and deed of sale transactions in the New South has increased of late, but says the banks have become much more sympathetic and are only foreclosing as a last resort.
Meanwhile, potential buyers from across the spectrum are producing much more substantial deposits, he says, and are increasingly winning the banks over on home loan applications.
Other current market traits include extreme avoidance of any property that buyers perceive as overpriced and a lack of cash buyers in contrast to many other parts of the country.
For more information contact Colin Rodrigues on 011 680 4428 or click here to visit the website.
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