Following another interest rate cut, Gauteng is the property market to get into right now.
According to Samuel Seeff, chairman of the Seeff Property Group, Gauteng offers the best value in the country right now, and this is across almost all price categories including luxury property.
He said the latest interest rate cut should be just the incentive that buyers need to get into the market.
Buyers can find prices very similar to what they were two years ago. Johannesburg in particular was the worst performer in terms of price growth with the StatsSA Residential Property Price Index, indicating prices in fact declined over the last year by 1.3%, and grew by only 8.6% over the past five years.
According to StatsSA, Gauteng continues to see the largest inflow of migration as people move to the metros in search of economic opportunity. Gauteng also boasts the largest volume of entry level buyers.
There are many very affordably priced property categories and areas, and most offer surplus stock, says Seeff.
Tshwane and Ekurhuleni prices increased by only 2.2% and 2.3% respectively over the last year, according to StatsSA.
Lightstone data also shows the value on offer is outstanding. In Johannesburg, sectional title property transactions below R700,000 make up about 50% of activity with almost 83% falling below R1.5 million.
In terms of freehold houses, 50% of sales are below R1.1 million, and 75% are below R1.5 million. Overall, only 5% of all sales have been above R3 million.
The average sectional title price in Johannesburg is around R780,000, and for freehold houses, it is around R1.7 million.
The East Rand (Ekurhuleni) offers even more value with 62% of sectional title sales below R700,000, and 94% of all freehold house sales below R1.5 million.
The average sectional title price is R688,000, and for freehold, it is around R982,000.
Seeff expects the property market to rerate in 2025 with the Gauteng/Johannesburg area in particular poised for higher demand and increased sales volumes.
He said buyers can find good deals in the market given the surplus stock in many areas. Prices are only likely to start rising once stock levels reduce.
There is plenty to find in the R500,000 to R1.5 million range. Seeff’s branches highlight some area where buyers can find good value property right now:
Johannesburg North-West, priced from R600,000
Rochelle Holland, sales manager for Seeff North-West said Honeydew, Wilgeheuwel, Radiokop and Allens Nek offer excellent value for buyers. Small sectional titles are priced from around R600,000, townhouses from R1.1 million, and large family houses from R1.5 million.
Rentals are also affordable in the area. Luxury homes in the R4.9 million to R6.5 million range are the most in demand in the Eagle Canyon Estate.
Ekurhuleni (East Rand), priced from R500,000
Springs, Boksburg and Benoni offer excellent value, especially for entry level buyers, but also great value for family homes with access to good schools. With low price growth over the last five years, you can find good value between R500,000 and R1.2 million in Springs.
Boksburg sectional titles are around R781,000 on average, and freehold at R1.1 million. Benoni sectional titles are around R880,000, and freehold houses at R1.6 million on average.
These areas offer good schools and many business and industrial nodes.
Johannesburg South, priced from R400,000-R600,000
Khosi Sibiya and Phindi Mphahlele, licensees for Seeff Soweto, said the value here is still unmatched despite experiencing good capital growth over the last few years. You can still find good value between R400,000 and R800,000.
There is also great value in Joburg South and Alberton suburbs such as Ridgeway, Elandspark, Albemarle and many other areas where you can find property in the R600,000 to R1.5 million range, according to Suzanne Ridolfi, licensee for Seeff Jhb South and Alberton.
Randburg, priced from R580 000 to R800,000
Sectional titles offer the best value for those on a tight budget, according to Seeff Randburg. There are plenty of apartment and townhouse complexes to choose from, and these are excellent entry level properties, and also popular for the rental market.
The areas offer good access to places of work, and plenty of leisure, fitness and shopping centres, including Cresta. Luxury buyers can head to Northcliff for a choice of stunning homes in the R4.5 million to R8 million range.
Midrand and Johannesburg North, priced from R650 000
Areas such as Glen Austin and Noordwyk offer excellent value for money, according to Charles Vining, MD for Seeff Sandton and Midrand.
There is a choice of sectional titles from around R650,000, townhouses from around R1.1 million, and freehold houses from around R1.3 million. Sectional titles are also popular in Buccleuch for around R600,000 to R700,000, and in Paulshof and Douglasdale in the R750,000 to R950,000 range. These are also great rental investments.
Edenvale and Bedfordview, priced from R800,000
There’s lots of stock available in the area, said David Ingle, licensee for Seeff Bedfordview and Edenvale. He said sectional titles in the R800,000 to R1.5 million range are selling at similar prices to what developers marketed at some 4 to 5 years ago.
In the freehold sector, R2 million to R4 million buys a lot of house in the area. He said freehold is the niche to be in right now from an investment perspective as Seeff has sold properties in the R6 million to R9 million range recently.
The area is very popular for its centrality, excellent schools and amenities, and access to the airport.
Centurion West, priced from R680,000
Tiaan Pretorius, manager for Seeff Centurion said there is great value for money across most of Centurion. Most have easy access to highways, good private and public schools. Sectional titles start from R680,000.
Buyers can find good value in Die Hoewes from R680,000, Heuweloord from R1.3 million, and The Reeds from R1.4 million. Rooihuiskraal and Doringkloof also offer good value below R2 million.
There is also good value in the estates in the R3 million to R4.5 million range, especially Amberfield and Thatchfield where you can find three bedroomed houses from R1.5 million, and Midstream from just below R3 million.
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