Pricing realism has taken root in high-end Pretoria suburbs like Waterkloof and Brooklyn and it seems like this market has bottomed out.

Retha Schutte, Pam Golding Properties’ (PGP) regional executive in Pretoria, says sales in certain price bands have increased due to the higher demand in certain price bands and the low supply of these properties. “Houses in boomed security areas priced between R2m-R4m and units in security complexes priced between R2-R2,5m.”

“The biggest drawcards in these areas include top schools such as Afrikaans Hoër Seunskool and Meisieskool, Pretoria Boys’ and Girls’ High and Hoërskool Waterkloof, the University of Pretoria, the central location of the areas and most of all the prestige associated with the areas.”

She says families and young professionals are the main buyers at the moment. “There are no bargains in these areas. The demand for properties in these areas in certain price ranges is high and the supply remains low.”

However, Annette Boshoff, manager of the RealNet Waterkloof & Lynnwood franchise, says Waterkloof and Brooklyn do not really offer much for young buyers.

“This is not only because of the lack of smaller, low-maintenance modern townhouses or clusters that young professionals tend to prefer. The banks are insisting that all buyers in this area have deposits, so most are parents with children at the top schools in the area, who either already have substantial cash resources on hand or another property they are selling in order to raise the necessary funds.”

She says top-end home prices are still well down from their boom-time highs, but unlikely to go any lower. “So now’s the time to buy if you aspire to a property in premier Pretoria suburbs such as Waterkloof and Brooklyn.

“Most sellers in Waterkloof, for example, are now at a point where they cannot go lower on their asking prices because they owe too much on their properties and would end up having to pay in to clear their bonds.

“But prices are nevertheless much more realistic now than at the start of the recession, and most sales currently taking place in the area are in the under-R2m bracket, with a few in the R2m to R3m range.

“It is now possible to acquire a three-bedroom, two-bathroom house with pool, double garage and staff quarters on a large stand in Waterkloof proper for just over R2m, which would have been just about impossible in 2006 or 2007. And in among the mansions on Waterkloof Ridge, we currently have a four-bedroom, two-bathroom home on a huge stand for sale for under-R2m.”

Boshoff says in Brooklyn, the current “best-sellers” are older properties priced at between R2m and R2,5m featuring large bedrooms and original architecture, as these are considered bargains for the area.

“Property values in Brooklyn are influenced by its proximity to top schools, the University of Pretoria and upmarket shopping centres. It attracts many high-income earners and these executives also enjoy being close to the growing Brooklyn business node.” – Eugene Brink

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