SA's Top 10 suburbs

Top 10 suburbs are based on Total Number of Sales for the period December 1 2009 to February 28 2010. We review full title and sectional title properties collectively and exclude sales where purchase price is less than R100 000 or greater than R15m.

PROVINCE

TOWN / AREA

SUBURB

SALES

TOTAL VALUE

AVG. VALUE

WESTERN CAPE

MILNERTON

PARKLANDS 

81

R65,905,000

R813,641

FREE STATE

 BLOEMFONTEIN

 LANGENHOVEN PARK 

79

R67,132,000

R849,772

GAUTENG

SOWETO

PROTEA GLEN 

67

R16,776,500

R250,395

GAUTENG

CENTURION 

MIDSTREAM ESTATE

64

R104,759,000

R1,636,859

GAUTENG

SANDTON

DOUGLASDALE

61

R60,998,300

R999,972

GAUTENG

EDENVALE

GREENSTONE HILL

60

R59,035,400

R983,923

GAUTENG

ROODEPOORT

WELTEVREDEN PARK

60

R52,291,000

R871,516

WESTERN CAPE

MILNERTON

TABLE VIEW

60

R68,592,000

R1,143,200

GAUTENG

ALBERTON

MEYERSDAL

58

R64,306,480

R1,108,732

GAUTENG

PRETORIA

MOOIKLOOF RIDGE

52

R34,276,700

R659,167

Some very interesting statistics have been issued by the Knowledge Factory and their South African Property Transfer Guide on Tuesday. The latest newsletter details the ten most active areas in the country. Most of these suburbs continue to be in Gauteng but Milnerton (Parklands and Table View) also appear. Interestingly the Langenhoven Park suburb of Bloemfontein continues to appear being again number 2 on the list by order of homes sold during Dec 2009 to February 2010.

Bloemfontein continues to have a stable property market and is able to complete as an investment centre with any area in South Africa. There are virtually no vacancies in the city in all the residential categories and a very small vacancy factor in the commercial and industrial fields. Our residential sales department continues to be active with good demand for sensibly prices properties of all types. The biggest problem stopping the residential market from expanding is the very tight criteria being set by lending institutions. Despite the value of the properties being reached by the banks valuers, their criteria are preventing buyers from obtaining loans to finalise sales. There was a far bigger demand for property than the bonding situation allowed for. Even when buyers and sellers agreed on an acceptable selling price it was proving impossible in more than 50% of sales to find an institution willing to finance the sale by granting a mortgage bond. Although there were indications that the bond rate could be lowered by a further 5%. This would do little to simulate the market because of the restrictive loan policies that had been adopted by the lending institutions.

What was interesting about the SAPTG figures was that with the exception of Soweto's Protea Glen, Centurian's Midstream Estate, and Pretoria's Mooikloof Ridge, the average price range for the top suburbs was within a very small band (R815 000 to R1 143 000) which showed where the bulk of the current market was.

*Mike Spencer is from Platinum Global

Article by: Mike Spencer - www.realestateweb.co.za