A value for money town
From what was a small town on the outskirts of the East Rand to a promising property market, Springs has come a long way in terms of property.
From renting and buying houses and flats to investing in an estate home, Springs has a wide range of opportunities for potential property investors to choose from.
According to Henlo Meyer a local estate agent, Springs is doing better in the property world than the rest of the East Rand.
“The properties in Springs have always been relatively cheap and value for money in comparison with neighbouring towns, hence the reason that Springs was able to absorb the global recession better than most of its counterparts.”
The global recession affected all markets, whether it be property or financial, and because Springs is not isolated from the rest of the world anymore, its property markets were affected as well, but according to Meyer, not as much as other towns.
Another local estate agent says that compared to 2003, property prices are 10% lower.
“It isn’t even close to what it was in 2007. From 2003 to 2007 there was gradual growth in property prices and from 2007 there was a dramatic decrease,” says Michael van Heerden.
This is great news for people looking to buy or rent properties and has pushed up the sale of houses, but not for people selling their houses as they have had to settle for less than what they wanted to get for their property.
“We are, however, seeing a recovery in the market and prices are growing slowly but surely,” adds van Heerden.
Meyer says that banks are still very strict with their lending policies but this plays in the favour of Springs.
He says that this leads to more investors approaching the Springs market, because they receive a good yield on their investment, up to 1% per month, which is much better than most towns and cities in South Africa.
“The exclusive market has also grown tremendously, seeing more and more high-end buyers buying in suburbs like Presidents Ranch, as Springs offers exceptional value for money at this end of the market,” says Meyer, adding that the improvements happening currently to the N12 highway will increase property demand in Springs and will attract more investors and residents.
Meyer and van Heerden have opposing views of the kind of property people are looking at.
Meyer believes that people would rather buy than rent, “but banks are very strict with their lending policies and a lot of potential buyers simply cannot get a bond and are forced to rent.”
But van Heerden thinks that the trend is leaning towards people preferring to rent.
“People are definitely more interested in rental property especially if that property is priced correctly. It takes a week or less to get tenants for rental property that is market related.”
Both estate agents are positive about the property market in Springs and believe that it is healthy, exciting and looks to grow, especially once the N12 is complete.
