Residential development in Orchards, north of Pretoria, is "exploding" as developers respond to huge demand from first-time buyers in the affordable market.
Residential development in Orchards is proving to be highly popular due to its affordibility.
Willie du Plessis, who holds the local RealNet franchise, says the quick development of the area over the past five years can be accredited to the fact that it is on the far urban edge, with lots of room for expansion.
He says that its popularity is due to the fact that upwardly mobile buyers from Soshanguve view the area as a stepping stone to larger properties in Pretoria North proper or areas to the south, closer to the CBD.
Homes are compact, with two or three bedroom homes of 60 square metres priced between R400 000 and R500 000. Bank repossessions are sold at R300 000 and sometimes for R250 000, which opens up the market for qualifying lower-income buyers.
Du Plessis acquired the RealNet franchise for the western parts of the Moot earlier this year and says the flow from Orchards to suburbs in the area particularly benefits Booysens. Close to the Mabopane highway, it offers solid homes in an established suburb at affordable prices.
Many buyers are public servants with families who qualify for bonds to buy homes in the R500 000 to R700 000 price range. Homes in Booysens are substantially larger than in Orchards and are around 120 square metres. Another draw card for buyers from Orchards is the large stands that range from 1 000 to 2 500 square metres.
Four bedroom homes on the larger “burger erven” of 2 500 square metres are fetching prices of R850 000, but developers have seen a gap in the market and are buying up such properties.
Existing homes are then demolished and the land is subdivided into four plots on which units are built and sold from R550 000 each.
Newer units find ready buyers because prices are market related and some buyers are willing to swap the luxury of a larger stand for the benefit of a brand new home, says Du Plessis.