In Sandton, Johannesburg, the demand for property is experienced in price ranges from R500 000 up to R50 million at varying levels and at different times, but the greatest demand remains for property in the R850 000 to R2.5 million range.
This four bedroom, four bathroom home for sale in Sandhurst, Sandton, has a swimming pool, gym, entertainer’s patio and balcony with views. It is on the market for R20 million - click here to view.Even though this is the case, Charles Vining, Seeff’s Managing Director in Sandton, says that this branch has sold several properties in and around R15 million this year.
“Sales over R20 million are scarce, but they do happen occasionally. There has been a definite increase in activity in the luxury market and there are quite a few premium properties, including several that are selling in excess of R50 million,” says Vining.
A significant amount of interest for lavish properties comes from buyers on the African continent, but the majority of buyers in the upper end are South Africans, particularly successful business men and women.
Vining says the rental market in Sandton is on the up, and the year-on-year growth for the Seeff Sandton rental office has increased to 15%. This is mainly due to the area’s extensive commercial development in the past couple of years which has led to an unprecedented demand for rental accommodation.
This one bedroom, one bathroom garden flat selling in Sunninghill, Sandton, is situated in a complex with a swimming pool. It has a covered patio and is on sale for R750 000 - click here to view.Rentals in Sandton can fetch anything from R6 000 per month for an entry-level apartment in Bryanston or Houghton up to R50 000 per month for luxury homes in Fourways Gardens, Sandhurst, Hyde Park or Morningside, he says. Occasionally, top-end homes at rentals of R75 000 to R100 000 per month are seen.
“High-end rentals have had notable demand in the last few weeks. We have concluded several high-end leases, many in the R40 000 bracket, some in the R50 000 bracket, and recently a rental for R80 000 per month.
The highest rental demand in Sandton, however, is for two bedroom, two bathroom garden units in secure complexes, at a price of between R8 500 and R10 500 per month.
Although these can be found in suburbs like Bryanston and Houghton, Vining says the same units will cost around R15 000 per month in Hyde Park or Sandhurst.
This three bedroom, two bathroom home for sale in Bryanston, Sandton, has a swimming pool and interleading recreational rooms leading onto an entertainer’s patio. It is on the market for R6.95 million - click here to view.A bachelor or studio apartment in Sandton central will cost around R7 500, while a one bedroom apartment can be picked for the same price or even less in suburbs like Bryanston or Houghton.
Family homes with gardens and good security can fetch from R30 000 per month in Sandhurst, R25 000 per month in Hyde Park, R30 000 per month in Bryanston and R20 000 per month in Houghton, he says. Corporate leases for between R40 000 and R50 000 per month are also in demand in Sandton and Fourways Gardens.
Vining says above inflation rental escalations are being achieved, and rental yields of up to 8% are possible, especially in rental stock at lower price levels.
“In general, we expect the northern suburbs of Johannesburg, and particularly central Sandton and surrounds, to sustain its current position in terms of market demand and sales that are realised,” says Vining.
This two bedroom, two bathroom flat selling in Sandown, Sandton, is situated in a complex with a pool. It comes with two covered parking bays and is on sale for R1.999 million - click here to view.“Although there is economic pressure, we believe that property prices will continue to increase in relation to inflation. The gap between a seller’s expectations, which is currently high in terms of price expectation, and the prices that buyers are willing to pay, will narrow.”
He says astute buyers will not overpay for property, but will pay fair value. Unfortunately, many sellers in the market are over-priced by an average of 10%.
“Property in Sandton and surrounds remains a solid investment, particularly for investors with a long-term view. As the CBD continues to expand the surrounding suburbs become more and more desirable,” says Vining.
