The interest rate cut has made housing loans cheaper, the banks are competing aggressively for home loan business, and there is every reason for buyers to get into the property market.
Samuel Seeff, chairperson of the Seeff Property Group says it is easier to find a willing bank, provided you qualify for a home loan, and the process is fairly straightforward. You’ll need a clear credit record and positive credit score and provide proof of income and FICA verification of your identity and address. If self-employed, the process is a little more involved and you will need additional documentation.
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In Johannesburg, there has been a noticeable uptick in enquiries, sales activity and show houses, with a number of potential buyers now more comfortable committing to paper, notes Rupert Finnemore, PGP Gauteng Regional Executive.
“With improved consumer confidence and general improvement in sentiment, we expect to see more buyers coming into the market - it is after all, still a buyers’ market with good deals to be had,” says Finnemore.
According to area experts in Gauteng, these are some of the most favourable suburbs first-time buyers should invest in:
Bargain starter homes in Protea Glen, Soweto
Built in the 1990s, Protea Glen offers affordability and convenient amenities compared to suburbs in the Johannesburg South region.
Up to 40% of buyers in the Protea Glen area are first-time buyers, according to Khosi Sibiya and Phindile Mphahlele, managing directors for Seeff Soweto. The popular price band is R400 000 to R700 000.
Affordable and convenient accommodation in Midrand
The appeal of Midrand, located in central Gauteng, is its close proximity to almost everything. Halfway between Centurion and Sandton, this part of the Johannesburg metro is also home to the likes of Kayalami and the Mall of Africa.
Remax area specialist Jason Klein says with the "rising demand for safe estate living and world-class security, there is continuous development in Midrand, which is creating the demand to live within this dynamic CBD”.
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Midrand also offers great value for those working in Johannesburg, Sandton, Midrand or Pretoria as it offers easy access to the N1 and M1 highway interchanges.
Another popular choice for first-time buyers is Noordwyk, offering townhouses and homes from just R700 000 to R800 000. Charles Vining, MD for Seeff Sandton and Midrand adds that with prices from just R400 000 in Glen Austin, it is no surprise that young buyers comprise about 40% of the market.
A home for every budget in Randburg
Randburg is home to some of the most affordable neighbourhoods in Gauteng, offering a great location and proximity to numerous arterials including the N1, Sandton and Midrand.
Duane Butler, Manager for Seeff Randburg says the areas offer a broad range of property types and price points. Hotspots include Greenside which offers proximity to Sandton, prices rose from R1.8 million on average in 2009 to R3.11 million in 2019.
Areas such as Weltevreden Park, Allens Nek and Olivedale are currently a top choice for young families, as they offer access to great schools and amenities. You also have easy access to the highway and several main arterials. Prices start from just R500 000 for sectional title properties making it attractive for first-time buyers, says Butler.
| Average property sale price | Year-on-Year % average sale price change | 5-Year % average sale price change (2016 - 2020) | |
| Allens Nek | 900k | -8% | 7% |
| Fourways | R2.2m | 10% | 8% |
| Midrand | R890k | 10% | 18% |
| Noordwyk | R885m | -6% | -6% |
| Olivedale | R1.25m | 1% | -19% |
| Protea Glen | R299k | -34% | -27% |
| Weltevreden Park | R1.15m | 0% | 15% |
(Source: Property24 Data)
Great value in Fourways
There is a great return on Fourways apartments because of its proximity to the ever-growing Sandton CBD.
Skoko Sebola, principal at Leapfrog Midrand, says Covid-19 has led to an increase in sales over the last 3 months. In fact, most well-known real estate groups in the area have seen record sales over the past months. The gains are mainly due to low-interest rates.
“We have seen a major boost in the sales in Fourways since level 3 lockdown started in June last year, we have personally had some of our best months in 2020,” says Mike Birkett, Sales Agent of Fine and Country Fourways.
Estimated entry price you are looking at R690 000 for a one-bedroom apartment to R850 000 for a two-bedroom apartment.
“We are seeing a lot of activity in the market under R2 million which showcases the first-time-buyer activity,” says Fourie.
“Our seller motivation varies quite widely, especially considering the multitude of regions we service. It is imperative we understand that someone on the luxury market looking to scale down has a different motivation to that of a middle-income family looking to buy their primary residence and scale-up.”
*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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