Transfers above R3m soar to 59%
Category The Property Market
While South Africa's luxury property market performance remains weak, increased activity in properties in the R3 million price band has grown by some 59% - indicating those looking to invest into some of South Africa's most sough-after locations are finding the value they're looking for.
As of Q4 2020, sales priced between R800 000 and R1,5 million continue to account for the largest portion at 27.4%* of all transfers occurring in Q1 2021. Coming in behind this figure were transactions priced between R400,000-R800,000 which make up 23.8%* of the total transfers. This is followed by sales priced below R400,000 which now account for 23.6%* of all transfers in Q1. Sales between R1,5 million to R3 million accounted for 19.1%* and those priced above R3 million account for 6.1%* of the total transfers this quarter.
When reviewing each market segment in isolation, the number of transfers over R3 million has grown the most by 59% on the figures from Q1 2020. This is followed by the number of transfers that occurred between R1,5 - R3 million price point, growing by 53% YoY; transfers between R800,000 - R1,5 million grew by 42% YoY. Sales below R400,000 grew by 20% YoY and those between R400,000-R800,000 grew by 36% YoY.
"These numbers are staggering, especially when one takes into consideration that Q1 2020 was a normal, pre-pandemic quarter. Owing to the back-log of registrations when the Deeds Office closed, it could be expected that the number of registrations in Q3 and possibly even Q4 would be higher than the figures in Q2 2020; but nobody could have predicted that the numbers would be this high and that the same levels of demand would continue into the new year," comments Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.
First-time buyers looking to invest in property in the suburbs of Sandton can find good value across the area's listings which include three-bedroom homes, currently in demand, with an average sold price of R2.75m, according to Property24 data. Here's what's on offer.
Sandton
Sandton offers many suburbs where you can buy a nice family house, sometimes with up to four bedrooms along with a good sized garden and pool in the R2 million to R4 million range, says Charles Vining, managing director for Seeff Sandton.
There are currently *2 115 new property listings in Sandton market, according to Property24 Trends Data, with the average Asking price for the area being R2.3 million. The average sale price per erf for 2020 was about R2.7 million, while Section Scheme Units average sale price for the same period is R1.15 million.
The latest residential listings on Property24 show that two-bedroom homes are most widely available, at an average list price of R1.4 million, while three-bedroom home currently in demand are being sold at an average of R2.75m. Sellers in the area fall within the 36-49 years (40%), while buyers in the 18-36 fall in (39%) - followed by 37% within 36-49-year age group.
Suburbs such as Bryanston, River Club, Fourways, Lonehill, Strathavon, Hurlingham Manor, Morningside, Woodmead and Dainfern all offer property in this price range. These suburbs offer good proximity to the Sandton and Fourways CBD areas. They also offer access to Johannesburg/Sandton's top schools including Redhill, Crawford, St Stithians, Brescia House and Michael Mount Waldorf, Bryanston primary and high schools and many more, making them particularly appealing to family buyers but also to professionals.
"For young professionals, apartments and sectional title property offer great value and this sector was particularly active over the last year.
"The best value for first-time buyers is in Douglasdale, Paulshof and Lonehill where you can find apartments for under R1 million. These apartments are often sought for investment purposes as well.
"The suburbs offer good proximity to the Sandton, Montecasino and the Fourways precincts. Apartments are also often sought for investment purposes."
Author: Property 24