for a place to buy as a first time buyer? Experts say that some
of the new buying hot spots are in areas you would not really
have thought of buying in before, but you might be surprised and
even find a real gem.
The 'new suburbs' are old suburbs made new and areas which were
never considered before but have now seen burgeoning growth.
These areas are growing at a rapid pace, and some are being reinvented.
And in time to come they are bound to see even more growth
presenting a good possibility of capital return in the near future.
Barak Geffen of Sotheby's International Realty says: "Many
first time buyers have scurried out of the CBD and seaboard areas
which have become exorbitantly priced and, as a result, suburbs
that may have been viewed as iffy in the past are
being rejuvenated by new development."
Unveiling the curtain
Cape Town's Northern Suburbs may seem like a long shot... but
they are now in huge demand and the area has become highly appealling
because it's very centrally located and offers leafy areas with
spacious homes and gardens.
"In places like Parow and Goodwood much development has
taken place, allowing buyers to enter the market for as little
as R395 000," says Geffen.
"The exceptional value for money is keeping the market afloat,
increasing demand and bringing fresh new elements into these areas."
'Ready for a renaissance'
Andre de Villiers of Chas Everitt's Southern Suburbs in the Western
Cape says Maitland, Southfield, Ottery and Clovelly are areas
that have been overlooked.
He predicts that prices in Maitland will escalate fast in years
to come. "Its central position is now starting to attract
younger buyers looking for value," notes De Villiers.
"It is showing all the signs of an area getting ready for
a renaissance and offers great value, diversity and development
potential. All it needs is developers with vision one landmark
development is all it will take to galvanise the local property
Looking for a gem?
Southfield and Ottery also deserve a closer look from investors.
De Villiers says that a recent survey showed that the ratio of
rental return to capital outlay in these areas was the most profitable
in the south peninsula.
Meanwhile, in the False Bay area of the Western Cape, a "little
property gem gone unnoticed, is Clovelly for those looking for
a good buy with plenty of room for capital growth".
"False Bay is now getting better rentals than even a year
ago. There is a decent selection of properties with good sea views
at prices from R1.6-million upwards but they won't be available
at those prices a year from now."
Give me the green
In KwaZulu-Natal, many people have chosen to move out of the
central city areas into the leafy suburbs surrounding the key
"A major driver of this trend has been the desire to avoid
overflowing beaches and high activity city areas and a preference
for a more countrified lifestyle," says Barak Geffen.
"There has been a huge increase in development in areas
like Kloof where many families chose to live in order to be close
to private schools like St Marys, Highbury and Kearsney,
along with attractive golf courses and equestrian facilities.
"Properties are large and there are a number of developments
offering secure living options.
"As Durbans metropole areas expand we are likely to
see more movement inland," says Geffen.
Bound for returns
The demand pressure from emerging middle-class buyers moving
into the suburbs is an added sustaining factor for houses at the
middle- to lower-end of the market, resulting in "sustained
price growth of between 18 percent and 25 percent (depending on
area) in the R500 000 to R900 000 price segments throughout suburbs
in the greater Joburg area", says Geffen.
In the Gauteng area, "Pretorias New East, incorporating
Fairy Glen and Moreleta Park, has a large amount of new developments
which has created an entry-level market where homes are being
snatched up by Black Diamonds, moving into what were traditionally
white Afrikaans suburbs," says Geffen.
"The Centurion area, a bridge between Midrand and Pretoria,
has also taken off due to its close proximity to both metropoles
and good amenities. Entry-level homes in these areas can still
be found for between R500 000 and R700 000."
Hidden spots of gold
Johan Killian, who operates the Lew Geffen Sotheby's International
Realty franchise on the West Rand of Johannesburg, says the area
is becoming popular as investors who work in Joburgs metropole
areas take up flexi-time arrangements and install broadband, allowing
them to avoid peak hour traffic and enjoy the "countrified"
benefits of the West Rand.
Formerly a gold mining community, Daggafontein in Springs, and
the adjacent Struisbult, are old mining communities which, because
they are older and well established, have the appeal of huge trees
and foliage, providing a pleasant and leafy environment for home
"The residential property market in Springs is active with
a high demand for homes. Existing homes are selling from approximately
R400 000 for a two-bedroom home, up to around R1-million for a
spacious, four bedroom family home on a large stand. PGP's average
selling price in Springs is in the region of R500 000," says
Time to move back?
Solid old homes in inner suburbs are also winning favour again
among buyers, especially with young families, and this is very
evident in the older suburbs of Germiston.
Leslie de Wet, co-owner of the Chas Everitt International office
in Germiston, reports brisk sales in the inner suburbs.
"We find that especially couples in their mid-thirties are
targeting these older homes. Their children are starting school,
they need the space these old properties offer, and they prefer
the established infrastructure and want to be close to amenities
such as schools.
"Younger people are still keen on new developments on the
outer edges of town and older people tend to buy into security
"But buyers with young families find good value in the older
suburbs and are not averse to buying a basic golden oldie at a
reasonable price and then renovating it to suit their family's
requirements," notes De Wet.
He says the lovely finishes in many of these homes are also an
attraction. And although stock is limited, older homes needing
a touch of renovation are still available in the R500 000 to R750
000 price range.
"Meanwhile, homes in suburbs such as Leondale are very popular
among the upcoming middle class and a selection is available at
prices of between R500 000 and R650 000.
"Other popular suburbs include Elspark, where prices for
standard family homes range between R650 000 and R950 000, and
Hazeldean, where prices range between R750 000 and R1.1-million."