Young buyers snap up Tshwane homes

Affordable homes in the former township areas of Eersterust and Mamelodi to the east of central Pretoria are selling like hotcakes to buyers in their 20s and 30s.

Olga Molepo, RealNet’s area specialist for Eersterust, says there is tremendous demand for new properties under the R500 000 mark. “Anything up to this price is selling briskly – for instance, we recently fielded more than 20 calls for a property listed at R350 000 and it sold overnight – but buyers show resistance when prices rise above R500 000.

“Many of these buyers have been renting accommodation in the area and have made up their minds to get on the property ladder as soon as their finances allow. Rentals in the area range between R2000 and R3000 per month and young couples would rather pay that amount into their own bonds,” she says.

Mapula Jele, RealNet’s area specialist for Mamelodi, says the same trend is evident in her area. “There is strong demand for new properties among young buyers, especially for units close to security estates. Freehold homes, however, remain more popular than units within the estates as buyers prefer the freedom of full-title ownership.”

And although there is good value in older and bigger properties, they are not in big demand. The agents say young buyers show a strong preference for brand new units that need little maintenance while older buyers, who typically would target the older properties, are not active at the moment.

There is also little demand for the so-called council houses in the two areas, despite the fact that prices start at just R210 000 for units with two bedrooms, a kitchen and an inside or outside bathroom and that renovated or extended units are available for under R250 000.

Top properties in both areas come to the market at around the R1m mark, with one current exception being a guesthouse in Eersterust that has five en-suite bedrooms, all with private balconies, that is being offered at R4,9m. Two separate flats form part of the deal.

Article by: www.realnet.co.za