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Hard times for Hartebeespoort
 The
economic crisis is taking its toll on the Hartebeespoort property market,
once the darling of Gauteng’s rich and famous.
So says Ben van Zijl, principal of leading local agency Homenet/ Harcourts
Ades Royal who notes that property sales and prices in “Harties”
have come under extreme pressure in the wake of stricter bank lending
policies and the global economic meltdown.
The area boomed a few years ago and development took off. Sales and property
prices were buoyant and a number of record deals occurred. “Over
the past year though, Harties has done an about-turn. Sales at developments
have virtually come to a standstill with only a handful being concluded
in recent months. Private sales on the southern side of the dam have met
with more success but only marginally so,” says Van Zijl.
“Harties was traditionally viewed as a luxury property area and
people are shying away from buying here as ‘extravagant’ purchases
are the first thing people cut back on in tough times.”
He says the new lending protocols being applied by the banks are also
playing havoc with market prospects and that the incidence of foreclosures
and forced auctions has also increased.
Meanwhile, development in the area has slowed dramatically and applications
for new developments have dried up. According to Van Zijl, many units
are standing unsold and empty and a number of approved developments have
been put on hold until the market improves.
“Some developers are now offering their units to the rental market
in an attempt to cover costs. But although rentals were buoyant six months
ago, this sector has also quietened down now as potential tenants can
pick and choose from a wide variety of cheap rental stock.”
However, he says, there is hope for Harties. “The area has inherent
appeal and potential buyers are still keen to come here to escape the
crime and grime of Johannesburg or Pretoria, and despite the low volumes,
the average sales price has remained fairly robust at R1,5m.
“In addition, the area had become somewhat saturated in terms of
development and a lag in this sector will help to underpin the prices
of existing units.”
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Newsletter:
25 May 2012 2012 to 1 June 2012 - Dullstroom, Mpumalanga, South Africa
