Affordable and stress free Bloemfontein

Bloemfontein is the most affordable of the major metropolitan cities to live and buy property in, with most residential transactions in the R500,000 to R1m range. It also has one of the highest ratios of first-time buyers driven by the city’s overall affordability, says Bianca Jonker, licensee for Seeff Bloemfontein.

The market has been robust, with sales growth from January to August up by 19% and rentals up by 8% year-on-year. Mortgage originator, ooba, also reported mortgage loan applications rising by 9.5%, with 48% of the market comprising first-time buyers.

Jonker says Bloemfontein has a “big city, small town” feel with no traffic congestion, and a laid-back, community focused lifestyle. It offers a good quality of life, and excellent affordability, appealing to a broad demographic, from first-time buyers to families, retirees, students, legal, medical and other professionals, public sector employees, politicians, business executives and entrepreneurs.

She says the market vitality is also supported by increasing homeownership among women entrepreneurs. The future outlook for the metro includes planned infrastructure upgrades and new residential and student housing developments, indicating sustained opportunities for investors, buyers, and sellers across diverse property types.

Bloemfontein is the judicial capital and home to the Supreme Court of Appeal. It is also characterised by a strong academic tradition, with the University of the Free State and CUT, and prestigious schools such as Grey College along with major hospitals, government services, and a robust business sector.

Over one third of all property transactions in the Free State come from Bloemfontein with a recorded 2,716 transactions, totalling R3.56b for the 12-months ending October. About 2,230 of these relate to this year, transacting at an average price of R1.3m, with a significant percentage transacted below this.

Property prices grew by 26% over 10 years and 14.3% over 5 years, thus maintaining the competitive affordability. Property stock is dominated by freehold at 62.84%, sectional titles at 33.54%, and estates constituting approximately 4%.

Almost a third (27%) of buyers are under 35 years of age, and 42% under 50 years. This reflects strong participation by new entrants into the market, she says further. The average purchase price for first-time buyers is R960,000.

Sectional title property ranges from around R600,000 and houses from R1.2m. More affluent northern suburbs, such as Heuwelsig, Pentagon Park, Waverley, and Summerton, feature house prices typically in the R2m to R3m range.

The top end of the market is concentrated in the Woodland Hills Estate, inclusive of the Berg en Dal area, says Jonker. It attracts high income buyers such as politicians, business executives and professionals, says Jonker.

Bloemfontein also has a robust rental market with affordable monthly rentals. PayProp indicates an average of R7,500, and inflation topping growth of 7.7%. Rates start from R3,800 for small units. The northern suburbs range from R7,00 to R11,000 and a top rate of R18,000. Woodland Hills Estate typically ranges from R20,000 to R36,000 to a top rate of R99,000.

There is a shortage of rental stock, thus presenting significant investment opportunities, including student accommodation, says Jonker. Although rental investments in the Woodland Hills Estate have increased from 5-11%, she says there is still a shortage with only three rental units out of more than 5,000 properties currently available.

Issued by Gina Meintjes