This is according to Toni Mackrell, licensee for Seeff in the area, who adds that these buyers are also able to raise considerable deposits.
She says well-built family homes requiring some fixing-up are currently finding excellent favour with buyers in the area. “Most buyers are prepared to do some work to get the house in tip-top shape if they can get the property for a reduced price. It is due to these reason, as well as the quality of the buyers, that demand is good and growing in Alberton.”
“A large number of homeowners in Alberton are also choosing to stay put and renovate rather than to sell and scale up.”
According to Peter Bester, broker/owner of RE/MAX Finest in Alberton, the number of sales achieved in February alone this year, was three times higher than at any given period last year. “This is partly due to the industrial and commercial developments along the R59, which caused an influx of potential buyers and tenants to Alberton and surrounds. Such a development is Heineken Breweries, which opened their factory along the economic development corridor in September 2009.”
New developments in the area, such as the nature and eco estates in Meyersdal, also played a significant role in “putting Alberton on the real estate map,” notes Bester. Residential property prices achieved in these two developments ranged between R3m and R30m.
Aside from Meyersdal, New Redruth and Albertsdal have also seen an increase in estate, townhouse and cluster developments over the last five years. “As such, the demand for vacant land in Alberton remains high,” he says.
Commenting on the local property market’s performance, Bester says that more and more first-time home buyers are entering the market due to the low interest rate. “We’re also moving back to the old practise whereby buyers first put their homes on the market and then purchase a new home, as such subject-to-sales are the order of the day.”
He adds that while property prices depreciated in the past year, profits on distressed properties are being made.
Mackrell says the biggest increase in sales is taking place in the bracket between R800k and R1,5m. “Houses are still, the top sellers, but there is a fair bit of demand for townhouses. We’ve also seen gradual price rises of between 5% and 10% over the last couple of months.”
Entry-level homes in townships such as Soweto, Tokoza and Katlehong range between R350k and R550k while entry-level property in Alberton is priced from R600k upwards. Mid-level properties in the area start from R800k with homes in the affluent areas reaching up to R2m. “Homes in the last-mentioned price bracket do not stay on the market for long while homes priced at R2m and above sell, but sit on the market for anything between six months to a year,” he says.
Mackrell corroborates the view that upper-end properties in Alberton aren’t selling fast and attributes this to overpricing. “The eco estate properties are generally overcapitalised and overpriced.”
She says the rental market is also flourishing at the moment. “We’ve seen demand balloon in the R4k to R7k segment.” – Eugene Brink
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