25 Jul 2012
With low interest rates and reduction in monthly mortgage repayments, would-be home buyers are urged to take advantage of rates cut and buy now.
Pam Golding Properties (PGP) believes a reduction in interest rates will have a positive impact on the property market by providing a confidence boost in terms of sentiment, with cost savings, albeit modest, gradually filtering through into the market.
Dr Andrew Golding, chief executive officer of PGP says they need to encourage home ownership as a means of financial security for the future and first-time buyers are also faced with having to contend with all the other ‘new’ costs of owning and maintaining a home on a daily basis.
As a result, the reduction in interest rates will be beneficial to this sector of the market in particular, he says.
Homes to buy
Whether one is first-time buyer or looking to upgrade, relocate or buy an investment property, Jeffreys Bay is tipped as a good area to buy into offering affordable prices in some instances.
Click here to read about Jeffreys Bay home.
Johnny Galvin, manager at the Jeffreys Bay Aida office explains that many properties currently being sold are second homes that buyers from Gauteng and the Free State bought in the boom years and as economic conditions tighten, they are now being disposed of.
He notes that prices at some sales in execution auctions have been far below the true market value and this has distorted perceptions and given many bargain hunters the wrong idea.
Jeffreys Bay is still attractive to buyers who are looking for properties with 'sea-and-sand' views and prices are about half of what one would expect to pay for comparable properties in upmarket coastal destinations such as Clifton, for example, he says.
Galvin says homes priced between R750k to R1.2 million are selling fast.
In Jeffreys Bay, two bedroom cottages are priced from R550k and some of the units are perfect projects for DIY enthusiasts who want to customise a small holiday pad.
More modern townhouses are selling at prices from around R600k, average family or holiday homes are priced between R750k and R950k while luxury homes with four bedrooms, a pool and a sea view sell from about R1.5 million, he says.
Meanwhile, RealNet reports that Burgersfort in the heart of South Africa's platinum node is experiencing unprecedented growth and the demand for property in and around the Limpopo town is at an all-time high.
Elsa de Bruyn, owner of the local RealNet estate agency says the whole Tubatse district is benefiting from the platinum industry but that Burgersfort is fast becoming a sought-after residential node for employees at the mines.
She says development is keeping pace with the growing demand and they have been awarded a mandate by developers Cranbrook Property Projects to market its Spekboom River Estate, a model eco development on the banks of the river.
Spekboom River Estate is situated on 520ha of pristine bushveld and about 60 percent of the estate will be left undisturbed.
The estate will ultimately comprise seven extensions with almost 2 000 residential stands, a school and a business node.
The first extension with 313 stands has been proclaimed and all services installed.
A total of 60 homes have been completed or are currently under construction while the first 20 new homeowners have taken up residence.
De Bruyn says the estate offers a unique opportunity for investors as well as local residents and mine employees.
Fully serviced stands ranging between 500 and 900 square metres are priced from about R350 000.
Buyers can design their own homes or opt for building packages that include a stand and completed home at prices from about R1 million.
Curro Holdings have committed to construct a dual medium regional private school on the estate in the course of the next two years, while the Abacus Property Group, with the backing of key anchor tenants, is currently constructing an upmarket 32 000 square metre shopping centre on the estate, she says.
Fredericks says Saldanha residential properties are priced for around R600k and Vredenburg homes on average cost about R775k.
“Lower prices than this are almost impossible to find in the Western Cape and vacant plots are especially well priced right at R175 000,” she says.
In KwaZulu-Natal, buyers looking for exclusivity, peace and privacy can look no further than the Hawaan Forest Estate in Umhlanga, bordered by the last remaining strip of the indigenous dry coastal dune forest of the north coast.
The forest itself is under the stewardship of the Ezemvelo KZN Wildlife and Environment Society of Southern Africa and declared a Nature Reserve.
According to Tyson Properties chief executive officer Chris Tyson, the Hawaan Forest Estate is everything that most local eco and golf estates are not.
“This small, well maintained exclusive estate on Herald Drive offers the peace and privacy that conventional densely settled urban developments do not while still providing the security and amenities enjoyed by residents of upmarket complexes.”
He says majority of homes are occupied by their owners year round, creating a special sense of community.
The estate measures 157 acres with building rights for a total of 165 homes.
It is already 50 percent developed with some property owners having bought more than one plot so the completed estate is expected to number just 114 houses.
Prices of plots range from R1.4 million to just under R2 million, says Tyson.
Construction of the estate began in 2004, the first property was registered in November 2005 and the first homeowner arrived in 2006.
Gardening is strictly indigenous and homeowners have a list of 600 plants from which to choose when planting on each property.
Tyson says that no pets are allowed on the estate, a necessary sacrifice to protect the birds and wildlife.
In the Western Cape, PGP Stellenbosch office reports that a new development, Banghoek 2367 in Stellenbosch is set to be a hit among savvy buyers and investors looking to capitalise on the student rental market.
Selling prices range from R973 500 inclusive of VAT and occupation is scheduled for August 2012.
Banghoek 2367 is located immediately adjacent to the main campus in Banghoek Street, diagonally opposite the Engineering Faculty at the University of Stellenbosch.
PGP agent Odette Collins says the building itself is brand new with modern finishes.
The developer opted to demolish the existing building on the site and rebuild from the ground up, so as to ensure a new, clean and modern look.
Collins says the double-storey building offers 13 private residential suites, ranging in size from 27 square metres to 34 square metres.
The semi-furnished apartments offer a bedroom section, built-in study area, en suite bathroom with shower and kitchenette equipped with a microwave, sink and bar-fridge.
Six are intended for single occupancy, while the other seven can be shared by two residents.
All units are equipped with their own individual pre-paid electricity metres as well as a television connection and Wi-Fi internet access.
Internet use as well as weekly laundry and cleaning services are to be levied to the occupants.
PGP’s area manager for Stellenbosch, Louise Varga says the pricing of the development is extremely competitive given its high quality finishes and its prime central location.
Prices for single occupancy units range from R973 500 to R1.044 million while double occupancy units are priced from R1.1865 million to R1.222 million.
Levies are expected to amount to approximately R700 to R850 per month including services and corporate levies, depending on the size of the unit.
Varga says those buying for investment purposes can expect steady demand for rentals, with expected rentals of between R5 000 to R6 500 per month.
Similar developments in the area have attracted particular interest from postgraduate students from Johannesburg, KwaZulu-Natal and Namibia, adds Varga. –Denise Mhlanga
Denise MhlangaProperty journalist at property24.com
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