Gauteng property market saw a massive boom in sales activity over the past year, with ground-breaking transaction volumes equating to over R137 billion in value.
The property market in Gauteng is predominantly value-driven, with around 17% of all transactions falling above the R1.5 million mark. We can confirm the market is still hot, with well-priced properties under R2 million now selling within three to four days in certain areas, such as Pretoria East.
Seeff Randburg General Manager Duane Butler states that the most active price band for property in the area sits between R800,000 and R2.8 million; the highest price for a property sold by Seeff over the last year reached 5.8 million for a property in Northcliff.
Butler further mentions that Randburg is an ideal location that offers excellent value for money for families and first-time buyers looking to settle down. This statement remains valid, with over 40% of buyers falling below the 35-year age bracket, and 65% of these transactions are under R1.5 million.
Although price growth averaged 4%, and only slightly more in some sought-after regions, Butler honestly states that sellers should remain realistic with their initial asking prices.
These top suburbs’ average selling prices remain at an affordable rate of R650 000 to R1 million. According to Butler, family buyers can find fair prices ranging from R1.7 million to R2.2 million in those same suburbs.
In his closing statement, Butler states that the rental market made a full recovery after the challenges we experienced in 2020. He expects an increase in demand for rentals as financial challenges continue following the recent interest rate hikes.
Seeff Pretoria East Managing Director Gerhard van der Linde states that the local property market surged with prospective buyers, particularly those looking to buy in the R1.5 to R3 million price band. However, he further remarked that stock is in short supply, with well-priced properties under R2 million sold within three to four days.
According to van der Linde, even with the rising interest rates, it still makes sense financially to buy a property rather than rent, so it is no surprise that buyers continue to flood the property market.
The top price bands for first-time buyers range from R1.5 million to R2 million, while family buyers can expect to pay roughly R3 million for a quality home.
The best suburbs in Pretoria for first-time buyers include:
Seeff Centurion Manager Tiaan Pretorius states that the area has become a seller’s market. However, he believes that rising interest rates could significantly affect selling prices as the year continues.
Pretorius confirms that property in the area is selling rapidly, with suburban freeholds ranging between R1.5 million to R2 million and Townhouses under R1 million disappearing quickly. Estate Houses fetch a more significant price ranging from R2.5 million to R4.5 million. The biggest sale in the Centurion area over the last year was in Southdowns Estate and reached R10.6 million.
Pretorius proudly remarks that property price growth is excellent, at just over 7.5% for freehold properties and 6.2% for sectional title properties; this is above the market’s 4% average over the past year.
With a little effort, you can locate starter units with two bedrooms for around R650 000 in these areas.
The Gauteng Property market continues to boom, with many buyers sealing excellent deals on local properties.
However, we understand that purchasing property as a first-time buyer is a daunting ordeal, no matter how good the offer is. We recommend reading our article on how to keep your purchase offer enticing as a first-time buyer.
At Seeff, home is our story, so let us help you find the perfect home for you.