Stock shortages, bigger demand due to new developments and fewer days on the market before a property sells are all part of Seeff’s predictions for the property industry in the greater Pretoria area for 2016.
“A lot of new commercial development is taking place in Pretoria East, including the Menlyn Main development that is set to become Africa’s first green city,” says Gerhard van der Linde, Seeff’s MD in Pretoria East. “This mega development will include commercial, retail and shopping space, a gym, residential apartments, a hotel, an entertainment complex and scenic parklands. In addition to this many suburbs in Pretoria East are receiving a complete make-over due to the Gautrain and the new Rapid Bus Transit system and this will undoubtedly also create a greater demand for residential property.”
According to Van der Linde, the average property [in Pretoria East] stays on the market for 94 days, but his agency boasts 32 days when it has sole mandates.
On the rental front, he says that the area has a strong demand for sectional title properties in the sub-R1,5m price range where investors are buying with the specific intention of renting out.
“In general, the Pretoria East market is well balanced with a steady supply of stock and constant demand,” he says. “Home prices have increased modestly between 5% and 7% compared to last year, but sellers’ expectations are still too high. The highest sale we have concluded this year was for R9,5m.”
Lynne de Vos, Seeff’s MD in Pretoria North, says prices there have increased by 2%. “Our branch is up 3% compared to last year and my prediction is that the Pretoria North market will grow next year in especially the R800,000 to R1,2m price range.”
De Vos says the biggest demand for rentals was in the R6,000 per month price range. “Rental rates begin at around R3,500 per month for a one-bedroom apartment and could go all the way up to R25,000 per month for a fully furnished home in an estate. The highest sale made this year was for R5,2m,” she says.
“I believe the market will pick up by about 6% to 8% each year over the next two years, and that the most active price range will remain in the R800,000 to R1,5m category,” says Steve van Wyk, Seeff’s MD in Centurion.
Average rental prices range from about R5,000 for a one-bedroom home, R7,000 for a two-bedroom home and between R10,000 and R12,000 for a three-bedroom home.
Selling prices in Centurion have increased by about 5% and the average amount of days spent on the market for Seeff is 46 days as opposed to 80 days which is the area’s average. The highest sale concluded in Centurion this year was for R11m.