With the most recent events that happened in Gauteng, estate agents have had to work around the clock to assure their clients (both buyers and sellers) "that this is merely a temporary situation and things will go back to normal".
This is according to Andre Snyman, Remax Sales Manager, who says that there are still suburbs performing extremely well during these times.
“We find that due to the low-interest rates there is an influx of our first-time home buyers requiring pre-qualification from bond originators to acquire property to buy instead of renting.”
BetterBond’s application intake for June reflects that average purchase prices have increased for the 12 months ending in June, in all provinces. “The average purchase price in KwaZulu-Natal was up by 9% over a 12-month period, ending in June. Similarly, for the same period, the average house purchase price in Johannesburg North West increased by 8%, and by 10% in Johannesburg South East. This reflects Lightstone’s observation that house price inflation in Gauteng has almost doubled in the past five years, says Carl Coetzee, CEO of BetterBond.
“Gauteng may not be the top provincial performer in terms of house price growth, but there are signs that it is starting to gain momentum. With a house price inflation of 4.4%, it has surpassed the Western Cape, which is now showing the slowest price growth, according to Lightstone’s data for June.”
READ: What you can expect to pay in Cape Town's 15 most popular suburbs
Lightstone data for the major municipalities in Gauteng reveals similar trends. House prices in the City of Johannesburg increased by 3.6% in February this year, compared with a price growth of just 2% in 2017.
Johannesburg's most popular suburbs
In June 2021, searches for properties in Johannesburg on Property24 received over 6 million page views, and between April and June 2021, the city received over 18.7 million page views.
Johannesburg has currently *2 354 new property listings, according to property24 Trends Page, with the average asking price for the area being R1.4 million. The average sale price per erf for 2020 was about R1.15 million, below the R1 407 071 average residential purchase price currently in South Africa, while Section Scheme Units in Johannesburg have seen an average sale price for the same period is R685 000.
READ: The average purchase price South Africans are paying for a home
| Top 15 Johannesburg searched suburbs on Property24 between April to June 2021 |
|
Suburb |
Average Asking price in 2021 |
% Difference in Average Asking Price for 2020-2021 |
% Difference in Average Asking Price for 2019-2020 |
% Change in number of listings per suburb 2019 - 2020 |
% Change in number of listings per suburb 2020 - 2021 |
|
740 000 |
6% |
9% |
11% |
-42% |
|
|
750 000 |
-12% |
26% |
-28% |
-25% |
|
|
770 000 |
-8% |
24% |
5% |
-64% |
|
|
865 000 |
12% |
-4% |
-29% |
-38% |
|
|
1 000 000 |
0% |
5% |
-2% |
-33% |
|
|
1 295 000 |
4% |
-2% |
7% |
-43% |
|
|
1 300 000 |
8% |
9% |
-14% |
-31% |
|
|
1 400 000 |
27% |
-4% |
-22% |
-49% |
|
|
1 700 000 |
-1% |
-1% |
-1% |
-13% |
|
|
1 700 000 |
-37% |
0% |
-41% |
-20% |
|
|
1 850 000 |
0% |
3% |
8% |
-52% |
|
|
1 930 000 |
7% |
14% |
16% |
-44% |
|
|
2 750 000 |
-7% |
5% |
4% |
-28% |
|
|
2 872 500 |
-1% |
4% |
-10% |
-39% |
|
|
3 600 000 |
0% |
3% |
-33% |
-35% |
Source: Property 24 Trends Data
Click here to see all the latest trend data for Johannesburg
The top five suburbs receiving the most interest across Property24 over the last three months are Aspen Hill Nature Estate, Glenvista, Houghton Estate, Naturena and Lenasia.
Gauteng suburbs offer plenty of buying opportunities for first-time buyers with entry-level homes in across 5 top searched suburbs below R800 000, according to property24 Trends Data.
Ekurhuleni has shown the biggest surge with inflation of 5.9% in February and most of the Johannesburg suburbs show a big decline in listing price for 2021 when compared to 2019 and 2020, with Naturena displaying over 50% drop in sale count.
“Contrary to expectations that house prices would spiral downwards because of the pandemic, we have seen an acceleration of price growth throughout the country. This is undoubtedly a response to the South African Reserve Bank’s decision to hold the prime lending rate steady at 7% for several months,” says Coetzee.
“Economists predict that the repo rate is likely to hold steady for the rest of the year, giving the residential property market ample time to consolidate the growth we have seen in recent months.
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*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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