PRETORIA BUYERS FOCUS ON SECURITY

Security is a prime requirement for homeowners in the eastern suburbs of Pretoria, according to Martin Potgieter, Broker/Owner of RE/MAX Jacaranda.

"People do not only require a home in a secure complex, they also want 24-hour guards," he says. "There is a definite movement to security estates, as is evident in the upsurge of such developments in the area such as Boardwalk Manor & Meander, Woodhill, Mooikloof, Silverlakes."  Potgieter says that duet or semi-detached houses are popular purchase options in Faerie Glen, Garsfontein and Moreleta Park.

Talking about market trends in the area, he says that while everyone has been affected by the downturn, demand for properties within the security estates has never decreased. Buyers, he says, are however mostly cash buyers. "Prices in the estates have decreased slightly, by a maximum of 10%, whereas prices in ordinary suburbs have reduced by about 20%-25%."

Looking at specific price ranges, Potgieter says entry level homes range from R750 000 to R900 000 while mid level homes often sell between R1m and R1,6m, depending on the area. Average estate pricing starts at R1,6m and ranges up to around R2,1m with the most expensive estate homes priced around the R7,5m mark.

The buyers mix in open areas, according to Potgieter, is made up of young couples in their early 30's looking for a first home along with older couples wanting to scale down. In the estates he says the buyers are mostly made up of buyers in their late 30's to late 50's. "Money is no object for these buyers, for whom lifestyle and security is a prime concern," he says.

In Potgieter's view, the property market in his areas over the next 12 to 18 months will see the number of properties in distress to increase, as he says the effect of the recession is only now being really felt. "Sellers who are not in financial difficulties have taken their properties off the market as they are waiting for prices to increase before they sell. According to the press, property values are increasing, therefore sellers are prepared to wait to achieve their prices. I expect that in early 2011 we should see a significant increase in prices of around 15%."

Adrian Goslett, CEO of RE/MAX of Southern Africa, believes that overall, South African property owners can expect a moderate growth in property values this year of about 5%. "The market is picking up, and positive sentiment around property as a solidly performing asset class has returned. However affordability will remain a key focus as household debt levels are still too high."

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