While the residential property market remains under considerable pressure with a significant reduction in sales volumes, those buyers who wish to capitalise on the current market and who have available funds or high equity, a variety of opportunities present themselves.

Commenting on the current status of the market, Dr Andrew Golding, chief executive of the Pam Golding Properties (PGP) group, says: "Naturally bonded transfers have slowed more rapidly than un-bonded transfers - which have remained fairly consistent since late 2004. And while house prices are currently down by between 10% and 15%, Gauteng with its strong economy and low proportion of leisure homes has consistently been the least volatile province in terms of house price inflation.

"In addition, despite the slowdown in leisure properties KwaZulu-Natal and the Eastern Cape have yielded the greatest capital appreciation since 2000. Price inflation in the affordable segment, which has performed very well for some time, is now slowing rapidly, and unsurprisingly, affordable housing volumes have held up better than other segments.

"We anticipate that house price inflation will start to bottom out in mid-2009 at negative five percent. PGP noticed a marked upturn in sales volumes in September and attribute this to increased market share as consumers turn to respected brands, coupled with focused marketing. PGP also continues to see steady sales to cash buyers and an increase in rental demand."

Property hotspots:

Golding says given the above, astute buyers are taking heed of signals that the market is reaching its lowest ebb – prior to turning around – in order to ensure they don't miss out on favourable purchase opportunities which exist in the various regions.

"In the Western Cape there are very good buys to be had at present in the Cape Town central city; on the Atlantic Seaboard – an area which always enjoys sound returns and where one can in fact still acquire a one or two-bedroom apartment for under R2m; and along the West Coast, where there is excellent value for money in terms of houses and vacant plots alike - in areas such as Langebaan.

"The Boland and Overberg regions generally offer very good value for money and are experiencing increased interest from those seeking a secure place to raise a family, with good schools. Right now Wellington offers very sound value with good quality family homes available between R1m and R2m, as well as Robertson on the R62, where one can acquire a brand new two-bedroom home for just R850k," he says.

In Gauteng, on the East Rand, PGP is seeing exceptional sales of properties under R1m – offering huge value for money; while another "hot" area is Krugersdorp, in terms of older homes which have not really enjoyed much capital growth over the past five years and which offer sound potential for investment. In addition, this area still has pockets of land suitable for development, which offer good value for Gauteng. The advice from PGP is to follow the Gautrain – particularly the nodes in the vicinity of the Gautrain stations, where significant infrastructural improvements are taking place.

"Areas such as Rosebank and Killarney still offer sound buying opportunities, while PGP has highlighted an emerging new 'hotspot' in the new South of Johannesburg, expanding its operation in the area to meet the current and expected growth in demand for quality homes in sought after, top-end suburbs such as Glenvista, Bassonia and Meyersdal (Alberton). The 'New South' is one of the best kept secrets in the greater Johannesburg homes market. When compared with the Northern Suburbs, like-on-like homes in the 'elite' areas of the South currently cost up to 50% less.

"As building costs continue to rise, widening even further the price gap between new and existing homes, the price differential between North and South will become even more marked." PGP's recent sales in the South reflect a strong demand for lower entry level homes at around R550k, while homes at the top-end are fetching up to R12m. The company recently achieved a record price for Bassonia of R6,5m.

"Virtually anywhere along the Garden Route from Mossel Bay to Plettenberg Bay – this region is a hotspot for those 'semigrating' from the crime and bustle of busy city life for a better quality of life. There is still good value to be had in these towns as well as in the Eastern Cape coastal port cities of Port Elizabeth and East London.

"The Eastern Cape also has excellent schools which are attended by children from around Southern Africa. Grahamstown, which is home to renowned Rhodes University, St Andrews, Kingswood College and Diocesan School for Girls, is a major drawcard which sees many parents investing in property in the town. The Karoo, with its value-for-money and character-filled towns, continues to be high on the priority list for those escaping the rat race for clean air and a more balanced way of life. Recommended Karoo towns include Graaff-Reinet and Oudtshoorn.

"In KwaZulu-Natal the south coast continues to offer extremely sound investment opportunities with properties still very affordable and in very scenic surrounds. Astute investors purchasing on the lower part of the south coast in the Margate and surrounding areas will have seen that properties which approximately 15 years ago sold for R250k are currently selling for R2,5m and more. The fact that there's very good value for money in the residential property market makes Pietermaritzburg very appealing for young and first-time buyers. Two bedroom flats are still available for under R500k while brand new homes in residential developments can be had for prices ranging between R500k and R800k," says Golding.

For more information contact Dr Andrew Golding on 021 710 1700.

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