Seeff examines the current state of the Pretoria property market and what it means for buyers and sellers.
Lightstone data reports that 2022 was a fantastic year for Pretoria property, as over 29,828 property transfers boasted a total of more than R38.7 billion. Sellers will be interested to know that the average selling price was R1.2 million, and around 75% of all transactions achieved were below R1.5 million, while less than 6% were above R3 million.
These numbers suggest that the city's property market caters to a diverse range of budgets - something sellers and buyers should take note of. However, the property market is ever-changing, and Seeff Property Group notes the following significant trend among Pretoria properties today.
“The market is shifting,” shares Gerhard van der Linde, licensee for Seeff Pretoria East. While prices rose by 91% between 2010 and 2022 (compared to 71% for Johannesburg, as revealed by Statistics SA House Price Index), the market is unpredictable. High interest rates and living costs are now reducing demand, putting pressure on sellers and their asking prices.
This is concerning news for sellers, but good news for buyers as house prices are not expected to grow significantly in the near future.
The Buyers’ Guide to Pretoria Property in Today’s Market
Despite the uncertain economic climate, there are still serious buyers exploring the market. Now, with a flood of new properties entering the fray, these buyers have a bounty of choices at their fingertips. It's a buyer's market, and a great opportunity to find your dream home or investment.
Gerhard Van der Linde urges buyers to seize this opportunity and enter the market in Pretoria East, home to some of the most popular suburbs and estates in the country.
Buyers who are interested in purchasing Pretoria property should consider the following:
- Centurion offers fantastic value to first-time buyers. In neighbourhoods like Doringkloof, The Reeds, and Highveld, sectional title properties are available for under R800,000. If you're looking for something more, full title houses start at around R1.7 million.
- Centurion also offers a myriad of luxurious estates. Whether you're eyeing the sprawling greens of Centurion Golf Estate (starting at around R2.8 million), the sumptuous environs of Bluevalley Golf Estate (starting at R3 million), or the refined splendour of Thatchfield Estate (starting at just R1.5 million), there's something here to please even the most demanding buyer.
- As for rentals, the Centurion market remains robust, with prices for high-end rentals starting at around R18,000 per month. Most activity, however, is in the R9,000 to R15,000 range.
Landlords and tenants alike are feeling the pinch of rising living costs, so remember that rental amounts are edging upward, although still appearing on par with the Consumer Price Index (CPI).
The Sellers’ Guide to Pretoria Property in Today’s Market
Sellers will be pleased to know that the property market in Pretoria East is buzzing with activity, especially in the sought-after price range of R3 million to R5 million. Buyers at this level are less likely to be affected by interest rates and are still willing to pay top dollar for their dream home.
Sellers eager to sell Pretoria property should consider the following:
- The rental market in Pretoria East is thriving, with a surge in demand this year as noted by Rentals manager PG van der Linde. Rental rates have increased slightly, but only in line with inflation.
- As Centurion has seen a slight decline in potential buyers, Seeff Centurion's manager, Tiaan Pretorius, advises sellers to price their properties competitively to appeal to buyers in this more sensitive market.
The most active price bands in Centurion are up to R4.5 million, with strong movement in the sub-R2 million range, and in the R2.8 million to R3.5 million range for high-end estates. Security properties such as townhouses are also selling well in the R800,000 to R1.2 million range.
However, sellers should know that selling a property in Centurion is not as simple as listing it on a property portal. Mr. Pretorius cautions that properties listed online have less than a 35% chance of selling.
Seeff recommends that anyone selling Pretoria property should consult a reputable agency that understands the intricacies of the market and can guide them through the process to achieve a successful sale.
Are you a seller ready to make a move in this buyer’s market? A wise decision would be to reach out to Seeff’s Property Practitioners for expert insight and guidance, thus boosting your chances of finding a buyer quickly. Read Seeff’s blog for more tips on buying your first home.
And if you're a buyer determined to land your dream property, prioritise getting pre-approved for a loan. Not only will it streamline the transfer process, but it will also give you the confidence to make a strong and persuasive offer. Contact our Property Practitioners for assistance on your journey to buy Pretoria property.
Why not read Seeff’s blog on how to get your house in order before you sell, as well? You can never be too prepared.
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