Estate Living Magazine Estate Living Issue 28 April - Page 16

Push for sub-R2m homes “Considering that these properties are more affordable for first-time buyers and that no transfer duty applies to properties bought off plan — everyone wins” says Swain Somerset Lakes to target this market in 2018 to take advantage of the trend, predominantly driven by first-time buyers under the age of 35. Amdec Property Developments’ MD Nicholas Stopforth says bracket is growing. More property developers are expected “These properties are in great demand,” says Leapfrog’s CEO Bruce Swain. The 2018 Leapfrog Property Market Forecast predicts that the sub-R2m market is expected to be one of the best-performing segments. Seeff Properties’ Chairman Samuel Seeff says the robustness of the sub-R2m real estate band is mainly concentrated in SA’s major metros, Johannesburg and Cape Town in particular. the luxury market is feeling the heat. “While developers are bringing new products to the marketplace across a range of price bands, many are specifically targeting the R 1.5 million to R 2 million bracket. This trend will continue as the luxury market is under pressure.” When it comes to Gauteng’s sub-R2m real estate market, Johannesburg’s northern suburbs stand out. Data by Seeff shows that the demand is predominantly concentrated in “Both are seeing a notable influx of people from other areas. Randburg (North Riding) and Edenvale (Hurlyvale, Highway Johannesburg has the highest influx of people coming from the Gardens, Eastleigh and Illiondale). countryside looking for economic prospects, while Cape Town has people coming in from other areas. All of this has naturally meant a notable uptake in the demand in the R 1.5 million to R 2 million sector.” 16 | an ideal buying solution.” The popularity of lifestyle estate living is on the rise in the country as South African home buyers are attracted to residential developments that offer both security and lifestyle amenities, such as leisure, schooling and sporting activities. “Lifestyle and security estates also offer buyers a sound investment opportunity that is likely to grow in value over time.” City centre Millennials entering the market drive developer demand Pressure The clamour for homes in the R 1.5 million to R 2 million price provide buyers both within the province and from “out of town” In the south of Johannesburg, Alveda Park, Kibler Park, Mayfield Park, Winchester Hills, Ridgeway and Ormonde are prominent. Centurion near the Gautrain stations is in high demand, too. In Cape Town, suburbs near the city centre – including Observatory and Woodstock – and the Northern Suburbs are good sub-R2m targets. “In Cape Town’s city centre and along the Atlantic Seaboard, this price does not buy you much,” says Tyson Properties’ City Bowl office manager David Terry. Buyers with this budget are looking further out of town for better affordability. “If they want to buy in the inner city they will be buying a ‘fixer- The exclusive Somerset Lakes is situated in one of the last upper’. Developers in Observatory and the Southern Suburbs remaining sections of a residential zone in close proximity to the such as Kenilworth will target this price range for their more Hottentots Holland mountain range, the coastal region as well affordable units,” says Terry. as the one of the Western Cape’s finest winelands. Offering First-time buyers Seeff Properties’ manager for Cape Town’s Northern Suburbs of Brackenfell, Kraaifontein and Kuils River, Karla Coetzee, says first-time home buyers under the age of 35 drive demand for real estate at less than R 2 million in Cape Town. “In Kuils River, 40% of buyers are under 35 years old. They are after entry-level buyers a range options from freestanding homes, townhouses to apartments. Plover’s Nest at Somerset Lakes, is specifically aimed at buyers in the R1.5 million to R2million price bracket. Named after one of the estate’s resident birds, Plover’s Nest is home to 128 freestanding properties, all with their own private garden. The standard two bedroom units have a double carport, the three bedroom units have a garage and carport, as well as a pergola and patio. All of these units offer spectacular prices of about R 980 000 for full title houses and R 500 000 vie ws of the surrounding mountains. for flats.” In other metros there is a growing demand for sub-R2m property. In Kraaifontein, 37% of all buyers are millennials, says Coetzee. In Morningside, Durban, demand is outstripping supply, says “Prices here range from about R 600 000 for apartments and Tyson Properties’ Durban brand manager Kim Woods. R 1.1 million for houses. The growth rate in Kraaifontein has “There is a pool of buyers desperate to find homes in been phenomenal. We hope to see more of this in 2018.” Stefin Strydom from Somerset Lakes commented; “With current demand for estate living focused on the Western Cape, Somerset Lakes, a “premier lifestyle estate” – continues to this price range,” she says, adding that there are few new developments in Morningside. “We are constantly sourcing land or developers. In a built-up area like Morningside, this is proving difficult.” | 17