Gauteng Property Hot Spots | 'Strong rebound' in top Joburg and Pretoria East suburbs

The SA residential property market, like all property markets, is not a homogenous single entity but rather made up of tens of thousands of different suburbs and areas, each with their own set of nuanced factors which determine their desirability and affordability.

With this in mind, Dr Andrew Golding, chief executive of the Pam Golding Property group says there have however been some trends and influences which have become apparent post lockdown,” which were either not as prevalent pre lockdown or not present at all”.

“In demand are appealing suburbs and peripheral areas in metros, as well as secondary cities and towns traditionally viewed as holiday or retirement destinations, as buyers are attracted by the more spacious homes and more balanced and relaxed lifestyle in these markets.

“Within the sectional title market there is a shift towards larger units, as buyers seek more space for dedicated work areas and where possible, outdoor space.

'Exchanging small apartments for full title properties'

We are seeing sellers exchanging small apartments for larger units as well as full title properties. Areas such as Killarney, Riviera, Saxonwold, Westcliff and Forest Town have seen a strong rebound in properties below R2 million.

Add to this, Pam Golding Properties unit sales transactions out of our Hyde Park office (including suburbs in Johannesburg North such as Sandton) are at its highest level in 12 months.

"In Sunninghill we are experiencing a high demand, particularly in the R2.2 million to R2.5 million price range and especially for three-bedroom cluster homes. The demand is also high in The Parks, Norwood and Paulshof, and in estate living in Kyalami and Waterfall, among others.

(Source: Property24 Trends Data)

READ: The Midrand connection | Affordable convenience for those looking for an upgrade property

'50% increase in offers in Midrand'

In the 6 months preceding lockdown (1 October 2019 to 31 March 2020) and the 6 months from 1 June 2020 to 30 November 2020), Leadhome Properties observed some interesting trends in the towns and suburbs that increased in popularity according to the offers that were made.

Marcél du Toit, CEO of Leadhome says Midrand in Gauteng has had a substantial increase in offers between the two periods.

He says Midrand saw a 50% increase in offers, and reduction in the median days to sell from 65 days to 23 days. (that's a 65% reduction in the days to sell).

The suburbs of Erand Gardens, Barbeque Downs and Halfway Gardens proved to be very popular in this area, with properties in Halfway Gardens selling in a median of 9 days.

(Source: Property24 Trends Data)

R18m sale concluded during lockdown in Sandhurst

Seeff has seen a notable pickup in activity across the Sandton and Midrand areas including sales above R10m and even made an R18m sale in Sandhurst during the lockdown.

Charles Vining, MD for Seeff Sandton & Midrand says, "Buyers are taking advantage of the favourable interest rate and bank lending climate and the market remains active although market-related asking prices remain important

"Kyalami Estates – popular for its vast number of homes available (about 1 000), homes are large and family-friendly with great access to schools. Security is paramount. Infrastructure in the immediate surrounds has improved dramatically over recent year including the nearby Mall of Africa. The estate is popular with family buyers including young couples looking to start a family in the near future.

"Lately, there has been some interest from investors looking to ‘flip’ homes. As some of the homes are now almost 30 years old, they need upgrading and there is a gap in the market for investors to make the improvements and on-sell.

Pricing differs depending on the finishes and condition of the home itself, as well as the size. Sales this year have ranged from R2.6m to about R5.5m, adds Vining. 

READ: Inland buyers finding value in Clarens, White River, Parys and lesser-known Karoo towns

Randburg is home to some of the best middle-class neighbourhoods in Gauteng offering a great location and proximity numerous arterials including the N1, Sandton and Midrand.

Duane Butler, Manager for Seeff Randburg says the areas "remains very affordable with a broad range of property types and price points. Hotspots include Greenside which offers proximity to Sandton, prices rose from R1.8 million on average in 2009 to R3,11m in 2019.

"Linden offers great schools, prices rose from R1,45m in 2009 to R2,975m and sectional title rising from R780,000 in 2009 to R2,125m. Jukskei Park is another great area to invest in, prices rose from R1,09m in 2009 to R2,05m in 2019.

"Areas such as Weltevreden Park, Allens Nek and Olivedale are currently a top choice for young buyers including first-time buyers as they offer access to great schools and amenities. You also have easy access to the highway and several main arterials. Prices start from just R500 000 for sectional title properties making it attractive for first-time buyers.

(Source: Property24 Trends Data)

'Mondeor and Ormonde popular for families'

Kerrie Oates, manager with Seeff Glenanda says "both Mondeor and Ormonde form part of the popular southern suburbs of Johannesburg, highly sought-after for the family houses and great family lifestyle".

The areas offer excellent access to the main N1 that encircles Johannesburg with easy access to various industrial and business areas for work purposes.

Mondeor is well-established and offers various schools, churches, mosques, a police station, shopping centres and medical centres.

Properties are very accessibly priced, ranging from R800 000 to R3 million.

Ormonde offers even better price points for first-time buyers especially with a range of sectional title, freehold and estate living. Prices range from R600 000 to R1.5 million. The suburb is close to all amenities, schools and more.

Both suburbs offer affordable choices whether you are looking to buy or to rent, close to all routes leading to the city centre.

Pretoria East sees spike in R4m and below price band

Gerhard van der Linde, MD for Seeff Pretoria East says," Pretoria East is very popular and the market very busy below R4 million.

Hazeldean, Silver Lakes and Lombardy are expanding rapidly with new access routes and schools and further development to come which includes medical facilities, shopping, office, commercial, tourism buildings, hospitality and lifestyle. Reasons to invest include the new R44B City Development, dubbed “The East Capital” with access from the N4, the new road known as Hazeldean Road which will link The N4 to the R21, a Gautrain station at the new development and easier access to OR Tambo.

(Source: Property24 Trends Data)

"The whole area offers 12 upmarket estates with a broad offering in term of property types. Suburbs close to Menlyn Maine are also hotspots as Menlyn is the fastest growing region in Gauteng with booming prices. The development has also boosted demand and prices in surrounding suburbs such as Garsfontein, Menlo Park, Alphen Park, Newlands, Constantia Park and Ashlea Gardens.

"Equestria and Moreleta Park are ideal steppingstone neighbourhoods for newcomers who wish to establish themselves as real estate owners and may at a later stage upgrade to more expensive property, says Gerhard van der Linde, MD for Seeff Pretoria East. Another popular area is Sunnyside which offers a great location and some 8 474 sectional title units priced from as low as R350 000.

"Waterkloof has always been popular and we believe will continue to be because of its great location and proximity to top schools in Pretoria East. Waterkloof is also known for its large stands and leafy streets which makes it a very beautiful and settled suburb. Families with children in school usually buy here, diplomats and embassies and also families rent here.

"Waterkloof is also popular for developers because of its large stands. Waterkloof mainly consists of Full Title properties with a few Sectional Scheme properties. Properties on average sell for between R 3 500 000 and R5 500 000 depending on age and renovations been done. But new bigger developments can fetch up to R6 000 000. Upscale big homes on large stands go for closer to R7 000 000 to R8 000 000.

READ: Gauteng’s Germiston and Alberton hit peak movement in affordable R1.5m and under price band

'Centurion a good investment close to highways and the Gautrain'

Another very popular middle-class area offering great mobility to buyers. Property values in the newer estates and sectional title near the Gautrain Station have risen notably over the last five years. The desire for security will continue to boost the values of security estate property and there are many to choose from in the area, especially those with schools, medical facilities and shops like Midstream Estate.

Tiaan Pretorius, manager for Seeff Centurion say, "Good investments include sectional title property near the highways or Gautrain and the estates.

The average Property Price in Centurion is at R1.295m, with 3-bedroom properties for sale being the most widely listed, according to Property24 Trends Data. 

"First-time buyers have increased and are active in the R700 000 to R1 million range if buying on their own and up to R1.8m if buying jointly. Centurion is an attractive area for affordability with many units close to major highways, the Gautrain Station and all facilities in Centurion City. Popular suburbs include Centurion West, The Reeds and Die Hoewes. The latter for example offers 6 300 sectional title units priced from just R545 000 with about 30% of the market comprising of Millennial buyers.

*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.