Growth in Standard Bank’s (smoothed) median house price experienced further easing, contracting by -1% y/y in November from -0.5% y/y in October.
Writing in the latest house price report, Standard Bank Home Loans research analyst Sibusiso Gumbi says house price growth has remained rooted in low single digits throughout 2011 and this is likely to continue in 2012.
Standard Bank Home Loans research analyst Sibusiso Gumbi says house price growth has remained rooted in low single digits throughout 2011 and this is likely to continue in 2012.
The bank says household credit remains in low digits and so too does house price growth.
Writing in the latest house price report, Standard Bank Home Loans research analyst Sibusiso Gumbi says house price growth has remained rooted in low single digits throughout 2011 and this is likely to continue in 2012.
“South Africa’s macroeconomic fundamentals indicate a lack of stimuli for the residential property market to return to double-digit year on year price growth.”
Standard Bank believes that the monetary accommodation cycle has ended, with policy tightening likely to commence in the second quarter of 2013.
The repo rate is expected to remain on hold at 5.5 percent next year and inflation will maintain its upward trajectory in 2012 re-entering the target band only, says the bank.
Serious property buyers and tenants are urged to sign the deals now and not wait too long to make a decision on whether to buy or rent.
Nelis Bezuidenhout of the RealNet Wapadglen franchise in Pretoria says properties that are priced right and offer good value sell within a week and dithering buyers are losing out on good opportunities.
Bezuidenhout, who specialises in townhouses in the eastern suburbs of Faerie Glen, Garsfontein, Olympus and Wapadrand, says the Internet has made it easier for prospective buyers to source properties for sale.
However, he says many buyers are so overwhelmed by the number of listed properties that they find it difficult to narrow down their search.
Some buyers are reportedly confused by the perceived abundance of properties on offer that they cannot even settle on a realistic price bracket.
As an example, buyers will want to view properties in the range between R500 000 and R1 million and then find it very difficult to compare value.
He says stack units in Olympus are popular at the moment. Two bedroom units measuring 85 square metres and located on the first floor sell from R530 000 to R550 000. Similar units on the ground floor sell from R550 000 to R590 000.
“This leads to further delays and often when they do make up their minds the property of choice has already been sold."
Bezuidenhout advises would-be buyers to carefully weigh up what type of property they want at what price before they start viewing properties.
"It is easier to make a sound decision if you are very clear about what you really want and what you can afford.
“You will also save a lot of time and effort if you do not view unsuitable properties."
As for tenants, he says a few years ago, townhouses in Pretoria East were predominantly targeted by investors who let their properties.
Most current buyers are buying property for own use which has put rental stock under pressure.
Prospective tenants who dawdle to sign a lease often find that someone else has beaten them to it, he says.
He says despite the overwhelming data on house prices in South Africa, now is a good time to buy townhouses in Pretoria as home values showed small year-on-year price escalations since 2009.
First-time buyers and parents who have children attending tertiary institutions in Pretoria are currently active in the market.
Student accommodation in the area has grown more popular among out-of-town buyers because it offers better value than suburbs close to campuses.
He says stack units in Olympus are popular at the moment. Two bedroom units measuring 85 square metres and located on the first floor sell from R530 000 to R550 000.
Similar units on the ground floor sell from R550 000 to R590 000.
If you live in Gauteng and have never considered buying a home in the West Rand, perhaps you should.
Aida says the sleepy Muldersdrift is fast waking up and savvy buyers and investors are wasting no time snapping up homes in this area.
Muldersdrift, traditionally a quiet agricultural area characterised by smallholders keeping a few horses, sheep and chickens, has become the new housing hotspot on the West Rand.
Sienie van der Merwe of the local Aida office says it is the new hip place to be and now the focus of new residential development on the urban edge, and buyers are spoilt for choice between sectional title units and units in housing estates.
"It is conveniently located within easy reach of Lanseria International Airport,” she says.
It is also near the main routes leading to Pretoria and Midrand.
New office blocks are also drawing businesses to the area and this is expected to stimulate the local residential market, she says.
The nearby Ruimsig Golf Course, especially among retirees and businessmen is another draw card for buyers in this area.
Muldersdrift, traditionally a quiet agricultural area characterised by smallholders keeping a few horses, sheep and chickens, has become the new housing hotspot on the West Rand.
Buyers have easy access to the Silver Star Casino, a popular entertainment hub on the West Rand and a favourite venue for a night's entertainment.
Prices of townhouses in the area start at around R700 000 for a two-bedroom unit, while units in security estates such as Featherbrook start at around R2 million.
The demand for development land has seen prices escalate, she says.
Undeveloped agricultural holdings of 1ha that can be rezoned for development now reach prices of about R2 million.
Developed holdings are selling at prices ranging from R1.5 million to R7 million depending on location.
“At these price levels buyers are making lifestyle choices - the days of buying a holding in Muldersdrift with an eye to growing a few crops or running a few sheep are numbered."- Denise Mhlanga
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