Pretoria's Old East suburbs, where home owners have traditionally lived for up to 40 years, are attracting a new generation of buyers in search of large stands, easy access to good schools and reasonable value for money.
That's according to Letsie Coetzee, principal of Realty 1 International Property Group in the Lynnwoods area of Pretoria, who says the last 12 months in particular have seen a new generation moving into the Old East suburbs. Attributing this trend to the ideal location of the area in relation to both private and government schools, upmarket shopping centres and major access roads, Coetzee says the current buyer profile is that of an upwardly mobile, younger generation.
These are predominantly the purchasers of the properties being sold by retirees, many of whom are relocating to the Cape Province after having spent most of their lives in the area, raising their children and seeing them through university," she says. "In turn, the new buyers are finding good value for money in suburbs such as Lynnwood Glen, Lynnwood Manor, Die Wilgers and Lynnwood Riff, where entry level prices start at R1,5 million." This will inevitably buy a freestanding house of around 380 to 400 square metres on a large, well-established stand of up to 2 000 square meters, Coetzee says. "While these properties usually need updating, the price, abundance of space, borehole water and established treed gardens are major attractions for buyers with young children."
Putting the average selling price for the area at around R1,9 million, Coetzee says this figure has stayed constant for the last year, along with sellers' expectations. What has changed, though, is that properties are taking up to six months to sell at the moment, compared with last year's turnaround time of 60 days. Rather than an indicator of a loss of interest in the area, though, she says buyers are more informed than ever before and are accordingly taking their time to factor renovations into the equation before submitting their offers. "The buying pool, which is a demographic representation of South Africa's younger generation, is increasingly investing in the Lynnwoods area owing to the value for money offered by the suburbs, but they are doing their homework carefully before signing," she says.
Local market price growth seems to have reached a plateau since November last year, which bodes well for the future sustainability of the market, says Coetzee. This is something that motivated sellers need to consider when arriving at their selling price. The most reliable way of doing this is through a proper market analysis done by the listing agent, she says, adding: "By setting market-related asking prices, the time period on the market before a sale is concluded will be significantly shorter." Anecdotal evidence to support this assertion is the sale of a modern, three-storey property with 1000 square meters under roof, which sold for R3,2 million in January this year. The sale of this Lynnwood Riff home clearly indicates that buyers are confident about the area and willing to pay top prices - provided they are market-related, she emphasizes.
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