Gauteng's Pretoria is attracting a number of investors who are young with loads of cash as well as other property buyers to its affluent suburbs.
Estate agents operating in Pretoria are reporting an increase in the number of young people in particular entering the property market.
Waterkloof in the east of Pretoria is the young buyer’s destination location for those who are looking for an exclusive address.
According to RealNet area specialist, Heidi van Blommenstein, young professional property buyers with young families are targeting older homes in the lower price ranges of around R2 million.
She explains that these homes are typically between 50 and 60 years old with three bedrooms and old-fashioned kitchens and single bathrooms.
“Buyers view these homes as good investments and some are planning to upgrade their properties as and when funds allow,” she says.
These buyers are not particularly worried about money. She says buyers of these exclusive old-fashioned homes need around R412 000 for a deposit and transfer costs to buy a home in the price bracket of R2 million.
“Home buyers are prepared to delay renovations and live in relatively modest homes at a good address until they have saved the required funds.”
Stock is limited though as these homes are snapped up quite quickly when they are listed. Sellers are said to be consolidating their portfolios and are willing to sell at prices close to existing bonds and quite open to price negotiations.
“There are some homes that are still being sold for between 25 and 30 percent less than the initial asking prices while others wait for better offers.”
Aida reports an increase in property buyer activity in suburbs such as Erasmuskloof and Newlands.
Area agent Colin Michael says recently, a professional buyer purchased a home valued at R3.9 million in Erasmuskloof making it the top property sold in the area for the month.
Buyers either buy in sectional title, full title clusters or luxury freestanding homes. Investors are also showing a renewed interest in this area, he says.
“The confidence in the local market is underpinned by the area’s popularity, which was boosted by the completion of the new Garsfontein Road off and on-ramps on the N1 Highway,” says Michael.
Michael says these suburbs attract family buyers wanting to be close to good schools and buyers relocating to Pretoria from other parts of the country.
The entry-level price in Erasmuskloof and Newlands is R600 000 for a two bedroom townhouse popular among young buyers and older residents scaling down. Upmarket townhouses are priced up to R1.4 million.
He says house prices in Newlands start from R1.5 million and R1.8 million in Erasmuskloof.
In Centurion, the Gautrain is fuelling demand for properties for people working in Johannesburg, Midrand and Pretoria.
Riëtte Oosthuizen from RealNet franchise says the area is far more attractive to the University of Pretoria students as the bachelor flats close to the Gautrain station are reasonably priced.
She says the one and two-bedroom apartments and townhouses available in the centre of Centurion are priced between R450 000 and R600 000. Centurion is set to draw a number of buyers and attract many young working couples.
Centurion is centrally located with easy access to shopping malls, entertainment and recreational facilities as well as a first-world public transport system to take them quickly and easily to their jobs in Pretoria or Johannesburg.
“The savings they make on transport will assist them to buy their own homes instead of renting,” says Oosthuizen.
She says Centurion has a wide range of property types for family buyers who want to live close to good schools, top executives in search of luxury estate homes and those seeking to retire in a safe and clean environment.
Centurion residential property is generally held to be very good value for money. Three or four-bedroom family homes are currently priced at between R1.2 and R1.5 million. Retiring buyers can choose from two and three bedroom, two bathroom townhouses and cluster homes for under R800 000, she says.
She adds that upmarket golf and lifestyle estates in Centurion range from R2 million for a two bedroom home and up to R10 million for a six bedroom, four bathroom mansion
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