Is northern Joburg a buyers' or sellers' market?
It depends who you ask and where you look.
New developments are sprouting up all over northern Johannesburg raising questions of whether the market has become oversaturated. But has it? It depends where you look.
Philken Building Construction, responsible for sizeable new developments in the Honeydew area, such as Honeydew Gardens, says business is good and people are buying into new developments regardless of the impact of interest rate increases and the National Credit Act.
Philken's Pieter Wentzec says all its new developments were sold out during launch phase in 2007 so it is not overstocked.
Keith Hill from First Choice Realtors says, Randburg is a sought after area because of its central location and because everyone really finds it homely.
However, Hill adds that there are not that many new developments in the area because of a shortage of space, which means sellers can get their asking price.
In Fourways, Berry Everitt of Chas Everitt International says that there are not many new developments; probably because of power shortages. Thus sellers can get their asking prices if they are realistic, says Everitt.
Other agents operating in Fourways disagree with Everitt.
Colleen Matthews of Jawitz Properties says there are a lot of new developments in the area. She says that it is difficult to say how much stock is standing empty but with so much to choose from, sellers are not getting the prices they are asking for.
Kim Siegruhn of Pam Golding Properties says it's difficult to quantify the number of empty townhouses and new developments in the Fourways area.
She adds, however, that some townhouses have been standing empty for a year because most buyers find buying second hand townhouses that are a year old more attractive than off-plan as they can see what it looks like. However, if the price is right they will buy.
Meanwhile, Andrew Schaefer MD of Trafalgar Properties says that in Dainfern buyers can no longer get the prices they want because of massive new developments.
Karen Wheller of Yozma Properties and guest property expert on Realestateweb says Strubens Valley has become overdeveloped which means, most townhouses are standing empty with no one to either rent them nor buy them, therefore sellers are not getting the prices they are asking for.
However, in Northcliff, Windsor and Randpark Ridge sellers can command the asking price as there is not much space for developments, provided the price is right.
Article by: Denise Mhlanga - www.realestateweb.co.za