This is according to Robin von Mayer, Sandton and Morningside Sectional Title Specialist for Lew Geffen Sotheby’s International Realty, who said that over-supply has led to a buyer’s market across the suburbs.
Von Mayer said that the more affordable sector of the market at lower Rand per square meter, has proven to be the most active. “This continuous activity in the value-orientated sector is common in a competitive and saturated market,” explained Von Mayer. “Especially sought-after at the moment are family homes such as townhouses or cluster units in the R2,5m to R3,5m price band as well as one bedroom apartments for around R1m that generally offer investors better returns than their larger counterparts.”
There is a word of caution for landlords and investors though. Von Mayer stated that, although Sandton and Morningside may carry the location status, many of the surrounding suburbs offer more property for the same amount of money. It is important to acknowledge this and adjust expectation accordingly.
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, believes that although the market will continue to take pressure for some time, owners shouldn’t panic, that a correction is often the best thing for the overall health of the market. “In times like these it is always better to sit tight and ride the storm. New investors should be prudent in their property selection and regard any purchases made now as long term investments rather than short-term flips.”
He concludes that while the on-going sectional title development may have temporarily subdued the market, the investor confidence bodes well for the area and large-scale office developments in Sandton, which continue to attract new corporates to the node, will benefit the residential market in the long term.
Top photo: This five-bedroom, double-storey home is now on the market for R5,99m through Lew Geffen Sotheby’s International Realty