First-time home buyers finding value in Gauteng’s Randburg

While the property market in Randburg remains challenging, it is not without opportunity and many first-time buyers are granted 100% bonds.

This four bedroom, two bathroom home in Emmarentia offers a private garden, large patio and garage. It is on the market for R2.5 million - click here to view.

Even though the year started off with positive predictions of 2% to 3% growth in the Gauteng residential property sector, the marketplace has been slow, says Eloise de Stefanis, Seeff’s Residential Sales Director in Randburg.

“The market in Randburg changed rapidly from a seller’s market at the end of 2017 to a full-blown buyer’s market at present. Even though stock levels were low in the beginning of the year, we are now experiencing a more stable market with reasonable stock levels. Buyers, however, show a reduced appetite for commitment,” says De Stefanis.

This family home in Auckland Park has three bedrooms, two bathrooms and a double garage. It is selling for R2 million - click here to view.

She ascribes this to the political climate in the past few months, followed by a tough and challenging climate in the property industry as a whole.

“The average price band of properties advertised in the Randburg trading area is currently at around R1.8 million, while the average sales price for 2018 is R1.5 million. The most important factor for sellers remains to price their properties correctly from the start.”

According to De Stefanis, the best-performing suburbs in Randburg are currently Cosmo City, Ferndale, Emmarentia and Auckland Park, and the weaker performers seem to be property priced above R3.5 million. The price range most in demand is for property between R1.2 million and R1.8 million, but the strongest performing market segment is still at the lower price range below R1.5 million.

This apartment in Ferndale has one bedroom, one bathroom and is close to amenities. It is selling for R425 000 - click here to view.

“The banks’ lending criteria is favourable for first-time buyers, and we are regularly getting 100% bonds approved in Randburg. This is stimulating the property market and allowing sales to continue,” she says.

She says more than ever, an agent can only do well in this market if they have the necessary experience and negotiation skills to bridge the widening gap between buyers’ and sellers’ expectations. “Strong and professional agents are getting an edge on competitors and are performing well.

This 50sqm house in Cosmo City offers three bedrooms and one bathroom. It is selling for R680 000 - click here to view.

De Stefanis says the next six months will probably show a slow, but positive growth in the Randburg area.

“While we don’t expect a funfair, we are confident that professional agents have the opportunity to grow their market share and add value to serious sellers and buyers. We will probably only see the expected growth of 2% to 3% happening in the third and fourth quarters of 2018 as the warmer months and more positive outcomes reach our front doors in spring,” she says.

“The political climate has cooled down, and regardless of what surprises lie ahead, we expect an uptick in business and higher levels of consumer confidence to spill over to the property market.