Property values in Fairmount, north-east of Johannesburg, have remained steady with average house prices nudging up yearly over the past decade.
This according to Howard Hoff, Area Specialist for Lew Geffen Sotheby’s International Realty, who added: “The credit crunch never really affected the market as demand has always exceeded supply in this sought-after suburb, where property owners generally live in their homes for between 15 and 25 years.”
According to Hoff the most popular properties in the suburb are four bedroom homes selling for under R3m and three bedroom cluster homes on the market for less than R2,4m, with the sectional title market traditionally slow. The Fairmont real estate market is also characterised by a slow rental market due to the fact that most buyers are owners-occupiers.
A 10,000m² stand awaiting council approval for development will likely change the real estate game in Fairmont, with sectional title residential units comprising a significant part of the development according to Hoff.
The last time the Fairmount residential property market experienced such a change was with the Genesis on Fairmount development. In 2014, after the launch of Genesis on Fairmount, 67 sectional title sales were registered – significantly more than the average of between three and six sectional title units changing hands a year.
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, believes that this prospective development contributes to the favourable outlook for the Fairmount property market. “The current economic slump has been felt with house sales having slowed marginally,” said Geffen. “The general forecast for the area remains very positive as demand is still strong and renovations remain a common feature.”
Photo: Four bedroom home in Fairmount on the market for R6,6m through Lew Geffen Sotheby’s International Realty.