Property prices up in Jo’burg’s Old South

Strong demand for property in some of Johannesburg’s southern suburbs has prompted solid price growth – although these homes remain relatively affordable.

Phillip Ratshikhopha, owner and principal of the RealNet Southdale franchise, reports that average property price growth in his area continues to outstrip the national average.

“The agency is active in Turffontein, Kenilworth, Rosettenville and La Rochelle and last year the average property price growth in these suburbs was 22,75% - down from the three year average of 28% but far higher than the 10 to 12% average for the country”, he says.

“This can be attributed to the relatively affordable price range in this area with most houses selling at between R400 000 and R650 000 and flats having a median price of around R300 000.”

Growth has remained good throughout this year too, although sellers are typically lowering their asking prices by about 10% if they don’t sell within three months, Ratshikhopha says.

He adds that more than 50% of buyers in his area are from other African countries while black South Africans also account for a large percentage of purchases. “Coloureds, whites and Indians active in our market are almost all sellers.”

Ratshikhopha, an IT professional who headed the Homeloans IT division of Standard Bank before joining RealNet as a rookie agent 18 months ago, says his office has found a niche in the local market.

“We started in March last year with four inexperienced agents and our first sale followed the next month. We currently field eight agents and in July this year we had a record sales month with 18 sales totalling R7m.”

“Our quick penetration of this market is due to our total dedication to RealNet values and our ability to take immediate action when the situation demands. We focus on empowering our agents through formal training as well as training on the job. Weekly team meetings and one-on-one meetings with each agent are held and our achievers are publicly recognised,” he says.

Article from: www.realnet.co.za