Gauteng property market showing signs of early recovery
Data first published late last year regarding the recovery of the Gauteng property market is being proven correct in the first quarter of 2018. Research shows how first-time home buyers are beginning to rouse a formerly stagnant property industry in key areas around the province.
If you’ve been considering property for sale in Gauteng then your instincts may well be spot on the money as early predictions by industry experts late last year appear to be coming to fruition. With the appearance of political stability and normalisation beginning to take hold, the property market, especially in Gauteng, is following suit. Hungry young first time home buyers seem to be leading the charge.
Towards the end of 2017, Pam Golding Properties (PGP) agents identified the political uncertainty (26.9%) and tough economy (27.4%) as the key obstacles to activity in their areas along with lack of affordability (18.4%), difficult accessing finance (13.8%) and shortage of stock (13.6%). With the rise of the Ramaphosa government, however, it appears that much of the landscape has changed.
Rupert Finnemore, PGP Gauteng Regional Executive, has noted several key areas within Gauteng that show some of the best growth potential, and are being targeted by savvy first time home owners. He stated that the greater Fourways, Bryanston and Randburg areas are all trending property investment areas and should remain so. The Parks area (Parkwood, Parktown North, Parkview and Parkhurst) are all maintaining buyer interest, in part due to the wide variety budgets that they cater to and the convenience of the amenities around the area.
Finnemore stated that properties which are priced correctly will always sell, regardless of the price bracket. However, he notes that in some areas, there remains a gap between asking and selling price which may explain the oversupply in some markets. Gauteng currently has more property stock than the Western Cape, with its dual ocean borders and mountain.
This also means that Cape Town properties are more expensive, due to the limited availability of property, which leads many to prefer areas around Gauteng for their first purchase of a home. Close proximity to employment opportunities and continuous development projects don’t hurt the prospect either.
