PROPERTY: Equestria Property Market Boom
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The number of home sales and
enquiries by prospective homebuyers in Pretoria’s eastern suburbs has risen
dramatically, pointing to a turnaround in the local property
The RealNet estate agency alone has sold 17 properties in the past 12 weeks and have received nearly as many enquiries as they experienced before the economic slump.
Investors seem to have made a comeback and are typically targeting two-bedroom simplexes with a floor area of up to 90sqm. It is also interesting that buyers are making offers via the internet on properties they have not seen personally. These are pure business transactions by buyers who have done their homework and know what the rand price per square meter in a particular area or complex should be and can make quick, informed decisions.
Investors are arguing that now is a good time to buy since they expect prices to start rising shortly. At the moment there are still lots of properties available but it is likely that prices will rise in the near future. Additionally, owners who are not under pressure to sell have started withdrawing their properties from the market if they deem valuations too low, and this lead to upward pressure on prices.
At the same time, informed first time buyers who realise that it’s bargain time are finding good value in the area. Two-bedroom town houses of about 88sqm and with a garage, carport and private garden in Equestria can now be found for around R550 000 – a price that just a few years ago would have bought a stack unit.
There is also the added bonus that banks are again willing to offer 100% bonds and this has boosted demand for residential property.
There was little activity in new developments in the area over the past two years. However, a few developers, notably in the new hotspot of Willow Manor, were not cowed by the adverse economic conditions and have units to sell.
Business News Sector Tags: Property|