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Pretoria Is A Popular Location For First-Time Buyers

Die Hoewes property selling for R1.175 million through Pam Golding Properties  - Pretoria Is A Popular Location For First-Time Buyers

Pretoria remains the most popular location for
first-time buyers who accounted for approximately 29% of all sales during the
first quarter of 2019.

According
to the FNB Property Barometer May 2019, Pretoria is a preferred home location
for many first-time buyers, mainly because it has a higher representation of
civil servants who have enjoyed above inflation wage increases in the past few
years.

“Pretoria
has also for some time been relatively cheaper when compared to Johannesburg. Furthermore,
the ease of travel between the two cities with improved road network, and the
Gautrain has positioned Pretoria as an attractive destination with value for
money homes,” according to Siphamandla Mkhwanazi, property economist at FNB.

Although
more first-time buyers are choosing Pretoria, Johannesburg, being the economic
hub of South Africa will always be in demand. In the past few years,
Johannesburg has seen a number of new developments come onto the market with
the popular priced brackets ranging from R750 000 to R1.6 million, notes
Mkhwanazi.

Research
further shows that first-time buyers accounted for 31.7% at the end of 2017 in
Pretoria, while Johannesburg recorded 21.3% by the second quarter of 2018. By Q1
2019, the proportion of first-time buyers in Johannesburg had risen to 25.5%,
with Pretoria recording 29% of all sales.

Nationally,
the proportion of first-time buyers has increased to an estimated 22.7% in Q1
2019 from 17.6% in the same period in 2018, reveals the bank.

Data
from ooba has been showing an increase in first-time buyers since mid-2017 –
with first-time buyers accounting for 52.1% of total mortgages extended by ooba
during the first quarter of 2019.

Buying property in Pretoria

Indications
are that first-time buyers are starting to take advantage of what appears to be
a buyers’ market, particularly in the middle to higher-end segments. “The lower-end
has remained resilient, and still enjoys healthy demand levels,” he says.

Mkhwanazi
points out that what is traditionally regarded as the lower-end of the market,
the R250 000 to R500 000 price bracket seems to attract disproportionately more
first-time buyers, followed closely by the R500 000 to R750 000 price bracket.

“On
the opposite end of the spectrum, the “tail end” of what is regarded
as middle to higher-end seems to be quite popular as well, and these properties
are priced between R750 000 to R1.6 million.”

According
to Pam Golding Properties Pretoria area specialists, Pretoria is experiencing
an increase in the number of first-time buyers purchasing properties priced from
R400 000 in Pretoria Central, and up to R1.6 million in Centurion and Moreleta
Park.

Affordable properties in Pretoria Central and Pretoria
West

Tendai
Garaba, Pam Golding Properties Pretoria Central area specialist explains that there
has been an increase in demand for properties priced below R1 million in
Pretoria Central and Pretoria West, with over 300 property transactions
concluded overall in Pretoria West in 2018, and during the first quarter of
2019.

“The
popular price bracket is between R400 000 for one bedroom apartments in areas
such as Danville, west of Pretoria Central, and from R500 000 to R990 000 for properties
in secure estates including Westview Security Estate, Lotus Gardens Security
estate and Elandspoort in Pretoria West.”

Garaba
says in the established suburbs, first-time buyers purchase two to three
bedroom apartments priced between R475 000 to R800 000 with popular areas including
Lotus Gardens and Westview Security Estate.

Generally,
suburbs including Arcadia, Hatfield in Pretoria Central, as well as Lotus
Gardens Security Estate, and Westview Security Estate in Pretoria West are
popular with first-time buyers because of affordability and security.

These
suburbs are ideally located close to main roads with plenty of public
transport, shopping amenities, schools and health facilities.

Sought-after properties in Moreleta Park and Centurion

First-time
buyers are drawn to Moreleta Park because of its affordable properties priced
from R800 000, and located in secure estates, says Julian Scott, Pam Golding
Properties area specialist.

Scott
notes that there is definitely increased demand for homes in Moreleta Park from
first-time buyers looking for secure environments, and a lock-up-and-go
convenience lifestyle. Buyers tend to look for two bedrooms, however, others
buy three bedroom homes depending on their budget and affordability.

“We
have seen increased activity in the R800 000, and up to R1.6 million price
brackets in secure complexes and townhouse developments in Moreleta Park,” says
Scott.

According
to Rudi Kruger, Pam Golding Properties Centurion area specialist, Centurion is
also experiencing increased activity and demand from first-time buyers.

“Centurion
central is the most popular suburb for many first-time buyers because of its
close proximity to the Centurion Gautrain Station, and the N1 Highway thus
making it convenient for commuters between Johannesburg, O.R. Tambo
International Airport and Pretoria,” says Kruger.

He
says in Die Hoewes, first-time buyers are purchasing two and three bedrooms apartments
priced between R1 million and R1.6 million.

Die
Hoewes is situated close to Netcare Unitas Hospital, with exceptional schools
including Hoërskool Centurion, Lyttelton Manor High School and Village
Montessori. There is also the Gautrain Centurion Station with easy access to
major highways and main roads, with a number of shopping centres and
restaurants situated close to the suburb. “A large percentage
of first-time buyers purchase in Gauteng, and coupled with the fact that banks
are willing to lend, when the economy starts improving, first-time buyers in
Pretoria should certainly feel the benefits,” according to the agents.

The post Pretoria Is A Popular Location For First-Time Buyers appeared first on iAfrica.com.

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