Pretoria properties in suburbs neighbouring commercial developments and older houses on large properties are set to be in demand.
The Pretoria property market is expected to experience stock shortages, increased demand due to new developments, and growth in line with inflation of around 5% this year. Gerhard van der Linde, managing director, Seeff Pretoria East, says home prices increased between 5% and 7% last year and there’s an increasing demand by an emerging middle-class market for properties between R800,000 and R 1,2m. “Development highlights include Menlyn Maine, progress on the Bus Rapid Transit (BRT) system, and redevelopment of established suburbs such as Menlo Park and Hatfield due to the Gautrain and BRT system. In Pretoria North, prices increased by about 2% and are expected to grow, with many developments planned in a 15km radius from the city centre in 2016. In Centurion, selling prices increased by about 5% and should increase by about 6% to 8% each year over the next two years,” says Van der Linde.
Bertie Lombard, franchisee, Rawson Properties Waterkloof and Faerie Glen, says there’s a great deal of movement in the market and correctly priced properties will continue to sell this year. He says estates and boomed-off areas will become more popular with families and investors, while new residential units, offices and restaurants built in Hatfield Square will be popular with investors and parents buying for children. “More small developments for students and young working executives will happen in Brooklyn, Menlo Park and Lynnwood. Faerie Glen and Boardwalk Villa will face a stock shortage due to demand of sectional title units up to R800,000. In Faerie Glen, development of Olympus Village shopping centre with Burger King and Checkers, will be completed, while in Olympus several sectional title and estate developments will occur in 2016,” Lombard says.
Deon van Zyl, franchise development manager, Leapfrog Property Group Centurion, says the market is expected to grow in volume but not price this year, with any growth no higher than 5% to 6%. He says there will be pressure on selling prices, particularly in the upper market where an increase in stock and a decrease in buyers are expected this year. “There has been an increase in high-density developments with units in the R500,000 to R1,5m price range built, and there is a demand for older houses on big properties close to the university to be redeveloped into cluster houses. Developers are scaling down on office parks as office blocks stand empty for longer periods and return on investment is not as good as it used to be,” says Van Zyl.
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This article originally appeared in Neighbourhood, Sunday Times.