Johannesburg’s housing market rising in the East

Posted On Monday, 06 May 2019 15:56 Published by
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Well positioned in close proximity to the City of Ekurhuleni’s Aerotropolis, which is being developed around OR Tambo International Airport, Johannesburg East has emerged into the spotlight as a strategically well-positioned location for home owners and businesses alike.

-NELSON-FERREIRA-

Says Nelson Ferreira, Pam Golding Properties area principal in Johannesburg East: “No longer can this region be considered a Cinderella region to the more ‘glamorous’ northern suburbs of Johannesburg. Reflecting inflation of 3.1% (Jan to Dec 2018), the East Rand metro housing market is also consistently outperforming the Tshwane and Johannesburg markets (2.6% and 2.2% respective house price growth).

“Underpinned by all classes of people from a broad range of backgrounds and cultures, this broad-spread, cosmopolitan area is in demand because it provides value for money across all price bands and categories. Here you can gain entry into the property market starting from a low base, and acquire property right through to the top end, luxury market.

Incorporating the areas of Kempton Park, Bedfordview,Benoni, Boksburg, Brakpan, Linksfield, Edenvale and Greenstone, to name a few, Johannesburg East enjoys a younger demographic as it caters to a growing base of aspirant, first-time home buyers.

Says Ferreira: “While residential property in Johannesburg East ranges from as low as just R400 000 to R40 million at the very top end, luxury market, you can acquire homes starting from only R650 000 for a two-bedroom, two-bathroom house, while three-bedroom, two-bathroom homes with a double garage can be had for as little as R1.4 million.

-SERENGETI-

“The demand for homes in this more accessible price bracket is being driven by the burgeoning black middle class upgrading from the surrounding townships. In Kempton Park, six out of 10 of our sales transactions are concluded with such buyers who are motivated to invest in their own homes, with prices currently averaging at around R1 million. From there they upgrade to more expensive homes as they move up the career ladder, including luxury homes in Serengeti Golf and Country Estate.

“Home buyers derive many benefits from living and working in the heart of an international airport and commercial hub, which, coupled with the support of a growing black middle class, is boosting the volume of sales through various price bands, including the popular bracket from R800 000 to R2.5 million.”

Adding to the appeal, Johannesburg East is home to some of the best private schools in the country such as St Andrew’s, St Benedict’s, King David’s, Saheti, St Dominic’s and some of the best Curro schools and government schools.

Says Ferreira: “Catering for the growing demand for homes, large tracts of open land between Benoni, Boksburg, Kempton Park, Edenvale and Greenstone have been developed with clusters, townhouses and shopping centres. One of the biggest drivers in the Gauteng East property market is sectional title property, as you can acquire a quality two-bedroom, two-bathroom sectional title unit for R850 000 – ideal for first-time buyers, as well as a top end, high specification two-bedroom, two-bathroom unit for just R2.6 million in our upmarket Infinite development in Bedfordview.

-RYNFIELD-BENONI-

“We see tremendous room for property growth in the sectional title market over the next five years, facilitated by proximity to schools, fibre connectivity, security and easy access to key amenities such as shopping centres, highway network, gyms and other facilities.”

In the luxury market in Benoni, sectional title units such as The Links apartments in Ebotse Golf and Country Estate see two-bedroom, two-bathroom luxury apartments starting from R4.75 million.

The newest development on the East Rand is called The Neighbourhood, which provides a clear indication of investor confidence in the area. This new residential lifestyle development in the historic Linksfield suburb, adjacent to the Huddle Park Golf Course, features 315 stands priced from R2 million to R4.2 million. Phase one sold out in days, underlining the demand that exists for prestigious living within a secure environment, close to important amenities. This development also features a sectional title component called The Lofts and a shopping centre, The Square.

Apart from Ebotse and The Neighbourhood, other, existing luxury developments in the region include Serengeti Golf and Country Club Estate in Kempton Park, Thornhill Hill Estate in Modderfontein and La Como Lifestyle Estate in Boksburg. All are in high demand due to their prestigious address, security and lifestyle offering, proximity to top schools and transport networks by car or Gautrain and value for money in comparison to Gauteng North.

La Como, an 80-hectare lifestyle estate with 9ha wetland, lifestyle centre, four children’s parks, nature trail, gym, restaurant and office park which is home to leading companies, is ideally situated in the epicentre between Benoni, Kempton Park and Boksburg. Says Ferreira: “With luxury freehold build and package homes available from R3.25 million, capital appreciation is such that an existing home is already on the market at R15 million, which indicates the potentially lucrative return on investment potential.

“There continues to be much development activity along the Gauteng East corridor. We’ve had tremendous success with the Infinite development, comprising 200 sectional title units situated in front of Eastgate shopping centre. And our success in the prestigious over 50’s heritage Lifestyle Estate is attributable to the developer’s vision in bringing to market a well-priced sectional title offering tailored for retirees.

“The southern phase consists of two villages, the Oaks and The First, as well as Heritage House, comprising 128 sectional title double and triple-storey units and penthouses. With the first two phases transferred to the new owners, there are currently over 100 residents, while phase three is under way with occupation in the first quarter of this year (2019). In addition, a northern phase will be developed soon, with over 300 opportunities.

“In the commercial property space, we also offer a property management service for shopping centres and put together deals on shopping centres and commercial pieces of land zoned for such usage. We’ve also sold some very appealing office blocks on the East Rand. Typically, a well-managed office block, with more than a three-year lease in place and yielding a 12% return, will sell with ease. Having said that, these types of commercial properties are hard to find.”

Last modified on Monday, 06 May 2019 16:18

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