Gauteng property and prices moving again, says Seeff
Indications are that the Gauteng residential market is moving again as buyers capitalises on flat price growth of the last two years and significant value advantage compared to the Western Cape. Busy areas have again started seeing upward price movement with growth of up to 5% to 9% in certain high-demand suburbs.
Our northern region branches have seen a notable uptick in turnover during the first quarter of this year, says Samuel Seeff, chairman of the Seeff Property Group. Gauteng remains the powerhouse of the property market, accounting for 40% of all transactions compared to the Western Cape at just 27%. Around 37% of transactions were to first-time buyers at an average price of around R1.15 million
The provincial market continues to be anchored by first-time buyers, who make up approximately 37% of all transactions. On average, these entry-level buyers are purchasing homes at prices of around R500,000 to R1.5 million, notably more accessibly priced compared to the Cape.
The average monthly rent at R9,321 is also about 22% lower than the Cape, making the province a compelling option for both residents and investors seeking stability and yield.
The overall average transaction price in Gauteng currently sits at R1.35 million, nearly half the R2.45 million average seen in the Western Cape. About 78% of all Gauteng deals are concluded for under R2 million, while luxury transactions exceeding R4 million represent only 4.6% of the market.
The Sandton area has seen excellent price growth of around 6%. Activity over the last year has concentrated mostly in the R2 million to R8 million bracket. Charles Vining, Managing Director of Seeff Sandton, notes that while the top end of the market remains selective, sales of up to R40.25 million were concluded in Bryanston, R27 million in Inanda, R25.5 million in Morningside (Cloud's End Estate) and R20 million in Sandown (Michelangelo Towers).
Sandton is a highly aspirational area and despite the price growth over the last year still offers excellent value with a wide range of price points, he says. Entry-level properties in Paulshof, Lonehill, and Douglasdale are still selling in the R1 million to R2 million range, while family homes in Fourways often sell in the R1.5 million to R2.5 million range.
Khosi Sibiya, licensee for Seeff Soweto highlights “back-room investing” as a big trend. This is where people are purchasing homes specifically to build neat rooms for rental income and to help pay off the bond. She says this "back-room" rental economy is keeping the market moving. This constant influx of people looking for affordable rentals ensures that property in Soweto remains a solid investment.
Soweto's property market is mainly driven by the growing middle class who want modern homes without the high prices of the Northern Suburbs. People are looking for a better lifestyle at a price they can actually afford. A huge factor is the search for "value for money," where a family can get a full three-bedroom house for under R1 million. She says there are also more buyers looking for homes with solar or gas because of electricity issues, and they prefer places near malls like Protea Glen or Maponya for convenience.
The eastern side of the metro, including Boksburg and Benoni, reports more modest price growth of 2% to 3%. Talutha Van Tonder of Seeff Boksburg confirms that this slow growth means you can still find starter homes from in R700,000 to R1.3 million (mostly sectional titles, townhouses, or smaller starters) in Crystal Park, Sunward Park and Parkrand.
Family buyers in areas such as Rynfield and Farrarmere typically find value in the R1.3 million to R2.5 million range, while gated estates remain accessible between R1.5 million and R3 million.
Johannesburg South has bucked the trend of slow growth, recording price increases of 5% to 8% due to sustained demand. Residents are increasingly looking at Winchester Hills, Oakdene, and Ridgeway for value in the R750,000 to R1.5 million bracket.
Meanwhile, Centurion has seen a surge in volume following a price correction following the Covid-boom. Tiaan Pretorius, manager for Seeff Centurion, notes that Midstream enjoyed a 9% growth rate, with estate living there now starting at approximately R4.2 million. In contrast, suburbs such as Die Hoewes and The Reeds remain hotspots for first-time buyers, priced from R700,000, along with Eco Park (from R830,000), and Amberfield from R1.1 million.
Anja Duvenhage, a property agent from Seeff Hartbeespoort and Brits says these areas have seen price growth of 5% over the last year. The market is driven mostly by leisure buyers as well as semigration buyers who commute to the metros. The most active price band is around R2.5 million although prices of up to R5.75 million and R12 million were paid over the last year. The estates continue to attract strong interest in the R million to R4 million range, especially in d'Afrique, Xanadu, K'shane and Xanadu.
Photograph: Hartbeespoort – R8.5 million for a spectacular 5-bed home on a massive 6144sqm plot in the popular K'shane Estate which offers direct access to the dam and amenities such as tennis courts, clubhouse, peaceful walking trails and excellent security.
