2016 will see a continued demand for property, particularly near the CBD nodes of Sandton, Rosebank, Johannesburg Central and the business districts in Midrand and Pretoria.
This four bedroom, four bathroom home for sale in Hyde Park is situated in a complex in a boomed-off area. It has three receptions, heated swimming pool and study or home office with a separate entrance and its own parking. It is selling for R10.4m - click here to view.This is according to Charles Vining, Seeff’s Managing Director in Sandton, who says urbanisation is intensifying, as seen with the densification of areas like Sandton Central and Rosebank
He says the market is embracing this, and “sectional title property particularly sells extremely well, whether it is a development sale or a resale”.
Although the Sandton area offers property priced from R500 000 up to R50 million, Vining says the highest demand in 2016 will be experienced up to R3.5 million, but with the most demand in the R800 000 to R2 million price bracket.
“In these price ranges, affordability is an important consideration for both buyers and sellers. Buyers should attempt to obtain some sort of bond prequalification or understanding of the purchase price they will qualify for to avoid being disappointed by the banks for looking at property priced beyond their means,” he says.
“Sellers also need to be aware of affordability issues, and work closely with their agents to understand whether finance on a particular offer is likely to be secured or not.”
Vining warns that while many investment buyers purchasing sectional title property between R1 million and R2 million in Sandton are cash buyers, these types of buyers need to be certain of the time frame in which their money will become available before a transaction.
This two bedroom, two bathroom flat selling in Rivonia has a private garden and is situated in Rivonia Axis. It is on the market for R1.49 million - click here to view.“Properties in Sandton priced around R5 million up to around R9 million will also continue to have steady demand,” he says.
“Usually homes in this price range are either located in popular suburbs near schools and main arterial routes, or they are in security estates like Fourways Gardens and Dainfern.”
Cluster homes in suburbs like Houghton, Atholl and Bryanston are also to be found in this range. Buyers negotiate hard in this price range because they are looking to secure a good deal and are well aware of comparable sales in the area.
Vining says luxury home buyers looking at property priced at R20 million and above will continue to exercise caution.
“Approximately 10 sales above R20 million were concluded in all of Sandton in the last 12 months, which confirms that there is indeed activity, but at a more restrained pace,” he says.
Buyers with R20 million to spend will always weigh up property investment against other investment options and will make careful decisions while referencing their existing investment portfolio.
This three bedroom, two bathroom home for sale in Lonehill has a swimming pool, double automated garage and staff accommodation. It is selling for R2.65 million - click here to view.While a significant amount of interest for lavish properties comes from buyers on the African continent, the majority of buying in the upper end is predicted to come from successful South African businessmen and women, says Vining.
He says Seeff Sandton concludes 25% of the luxury home sales in Sandton, and currently has several homes priced above R60 million on the market. There has been interest in these properties, which reinforces the point that there is activity, says Vining.
On the whole, he says sale numbers will hold steady, and he predicts an increase in sales of between 7% and 10% year-on-year.
“The most important thing to bear in mind is that a well-priced home will sell quickly, and that buyers are astute and will continue to do their homework,” says Vining.
