Bloemfontein is experiencing a surge in residential property transactions concluded by young home buyers.
Sectional title units selling in a day
Bloemfontein is experiencing a surge in residential property transactions concluded by young home buyers, particularly first-time buyers, who are snapping up homes mainly in the price band below R1million, says Ulrich Sirgel, area principal for Pam Golding Properties.
Says Sirgel: “These are young professionals entering the market as well as buyers with young families, a number of whom are relocating from the neighbouring areas such as Botshabelo and Thaba Nchu.
“It is encouraging to see a plethora of young buyers stepping onto the first rung of the property ladder and beginning on the road to wealth creation.
Currently, the average price of homes sold overall in Bloemfontein is in the region of R1 million, in a market comprised of 80 percent freehold and 20 percent sectional title homes.
“Highly sought after are sectional title properties priced between R400 000 and R1 million, while there is also steady activity in regard to accurately priced homes between R1.5 million and R4 million.”
Areas with good value for money
Sirgel says areas which offer good value for money at present include Langenhoven Park and Willows. “Properties in Willows and around the university offer the potential for sound rental returns in the region of 8-10% per month, while other similar income areas yield returns of 6-8 percent on average.”
Sirgel says in Willows, sectional title units in complexes such as Garwood, Sonelca, Howie and Bloem Valley are most popular for investment buyers for student accommodation.
Adds Sirgel: “Notably, mainly three and four-bedroom sectional units in Willows sell in just one day from listing in the market, due to the potential for sound return on investment.
“Generally, there is a shortage of entry level stock to cater for young buyers, which presents opportunities for developers to bring new stock onto the market. Apart from Botshabelo and Thaba Nchu, we are seeing people from Grasslands and Mandela View moving closer to town to reduce commutes, further boosting the demand for accommodation.
“With two universities – the University of the Free State and Central University of Technology, housing demand is further driven by the need for student accommodation. This is prompting investors to acquire sectional title apartments to renovate and let to students.
Concludes Sirgel: “In addition, there is ongoing activity in the freehold homes market, mainly up to the R3 million mark.”