Although South Africa's house price inflation has dipped below the 5% mark for the first time since March 2021 and property is more affordable than ever before, price is not the only factor a potential buyer must take into account.
Joe Spring, Head of Location and Commerce at Lightstone, says “Information on a property’s location, demand, and environmental trends can reveal more about its feasibility as an investment, for both the savvy investor and first-time homeowner.”
There are fundamental reasons why the saying, ‘location, location, location!’ is critical to a good investment. No house, building, or plot of land is an island. No one wants to buy an attractive house if the municipal areas around it are poorly maintained, so properties in places with good facilities, such as main roads, shops, high-quality schools, medical care, and secure accessibility perform better than others.
With that in mind, estate agents elaborate on value-for-money areas in Gauteng for first-time buyers:
1. Midrand
Midrand is a vast area linking Johannesburg and Pretoria with over R5.6 billion in real estate transactions over the last twelve months to October.
It is now one of the fastest growth areas for young buyers with some 47% of sales over the last year to millennial buyers. This is among the highest in the country over the last year according to Charles Vining, managing director of Seeff Sandton and Midrand.
Vining says prices are very accessible; hence it attracts a large number of first-time buyers and sellers. There is a broad choice for buyers and investors, ranging from affordable apartments to sectional title complexes, freehold homes and gated communities. Luxury developments include Waterfall Estate.
Midrand suburb has currently *912 new property listings, according to property24 Trends Data, with the average asking price for the area being R1.37 million. The average sale price per erf for 2020 was about R800 000, while Section Scheme Units for the same period is about R930 000.
Of the R5.6bn in transactions recorded for the 12-months to the end of September, 72% fall below R1.5 million, a further 42% between R1.5 million and R3 million and about 8% above R3 million.
2. Randburg
Randburg is the ideal area for first-time buyers as it offers young investors a broad range of affordable suburbs and property options; from aspirant professionals wanting modern lock-up-and-go convenience to young couples seeking a traditional family home, says Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg.
Over and above accessible pricing and value for money, Odendaal says Randburg has every amenity that anyone could need and is also very conveniently situated with easy access to major arterials as well as the greater Sandton area. It also boasts numerous first-rate shopping centres, medical and sports facilities and excellent private and public schools.
A budget of R1.5 million to R2 million will buy a spacious three- to four-bedroom freestanding family home, often on a sizeable plot, in suburbs like Ferndale, Northwold, Randpark Ridge, North Riding, Malanshof, Olivedale, Blairgowrie and Sharonlea.
Randburg suburb has currently *1 216 new property listings, according to property24 Trends Data, with the average asking price for the area being R1.535 million. The average sale price per erf for 2020 was about R1.79 million, while Section Scheme Units for the same period is about R850 000.
3. Krugersdorp
Denise Plank, Remax Masters Sales Manager says Krugersdorp is rich in history being named after President Paul Kruger.
It was traditionally more of a mining and industrial area but has boomed over the last few years. There has been a lot of estate development in the Ruimsig, Pinehaven areas and surrounds. Malls have also been built to cater to the residents in these areas such as Cradlestone. Silverstar Casino is home to some of the best restaurants as well as the Barnyard Theatre.
The suburb has currently *794 new property listings, according to property24 Trends Data, with the average asking price for the area being R1.280 million. The average sale price per erf for 2020 was about R880 000, while Section Scheme Units for the same period is about R690 000.
There is also an entertainment centre, catering perfectly for family outings. In terms of schooling, some of the best-known sports schools are situated in Krugersdorp such as Monument High. The N14 is within easy access, and this ensures weekend getaways to places like Magaliesburg and Hartbeestpoort are quick and convenient. Krugersdorp, says Plank.
4. Roodepoort
Roodepoort is among only a handful of areas where you can buy homes ranging from R400 000 to R20 million without moving more than a few kilometres, with a choice of properties ranging from older one-bedroom apartments to modern five-bedroom estate homes with all the bells and whistles, says Odendaal.
He says one of the biggest advantages of buying in the area is the number of freehold properties available for less than R1 million, which has made greater Roodepoort a favourite with young couples, families with children in school and middle-aged couples who are scaling down.
Houses can still be bought for under R1 million in suburbs like Grobler Park, Honey Hills, Amorosa, Wilro Park and Roodepoort West. In Fleurhof and Florida Lake there are apartments for under R500 000 and in Constantia Kloof, Ruimsig and Wilgeheuwel modern apartments cost between R750 000 and R1.5 million.
Roodepoort has currently *1 630 new property listings, according to property24 Trends Data, with the average asking price for the area being R1.199 million. The average sale price per erf for 2020 was about R1.3 million, while Section Scheme Units for the same period is about R736 500.
Underpinning Roodepoort’s stable market is the plethora of amenities available to residents as well as its accessibility from metros like Pretoria, Midrand and Soweto. There are many new malls in the area, as well as several private schools and three private hospitals, a Monash University campus and several golf clubs and other sporting facilities, as well as the world-renowned Walter Sisulu Botanical Gardens. There are also conveniently-located office parks with commercial properties mushrooming in the area, particularly along Hendrik Potgieter Road, and people who work there want to live nearby, explains Odendaal.
5. Eikenhof
Eikenhof located in the south of Johannesburg offers value-for-money properties under R2 million. Vacant land in Eye of Africa, Tedderfield, Hartzenbergfontein, Bronkhorstfontein, Elandsfontein, Alewynspoort and Misgund is also available, says Remax All-stars specialist agent, Charlotte van den Berg.
“The main drawcards for these areas are agricultural holdings and farms for people to farm and live a tranquil and free lifestyle, harvesting their vegetables on a small scale. Living off the grid and having a better family life, smallholdings for families staying together supporting one another,” says Van den Berg.
The area has currently *44 new property listings, according to property24 Trends Data, with the average asking price for the area being R2.49 million. The average sale price per erf for 2020 was about R1.287 500, while Section Scheme Units for the same period is about R2.15 million.
“Staying in the south of Johannesburg provides easy access to the north, East Rand and West Rand. The area is a business hub for guesthouses, resorts, wedding venues and small enterprises. Farming with vegetables, livestock and game are well presented in all areas. This is also horse riding country in south Johannesburg. Big companies doing canning of food, bottling of water and the Redfarms are one of the biggest farms the area with various agricultural enterprises.
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