Homes you can buy for the average house price in the vibey suburbs of Pretoria and Joburg

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The impact on South Africa’s residential housing market is not expected to be significant, especially as this is still the lowest level of prime interest rate (now 8.25%, up from 7.75%) in more than two decades (prime was 8.5% between July-2012 and Dec-2013).

This townhouse in Bassonia offers two bedrooms, two-and-a-half bathrooms, a complex pool, and 24-hour security. It is selling for R1.495 million – click here to view.

This is according to Dr. Andrew Golding, chief executive of the Pam Golding Property group, who says that for example, for a home buyer with a bond of R1 million over 20 years, and a prime rate of 8.25%, payments will increase from R8 209 per month to R8 521.

READ: Know what you can afford as interest rates rise

“According to Ooba, the average approval rate for 100% bonds inched higher from 81.3% in March to 82.8% in April, the highest rate for the year to date, with the approval rate for first-time buyers at 79.9%. This indicates that financial institutions still demonstrate a strong and competitive appetite for lending.

“Bearing in mind that the desire among our country’s sizeable young generation of savvy, aspirational citizens is to own their own homes, and that activity in the marketplace is also fuelled by people relocating for a variety of lifestyle and other reasons, we are optimistic that the residential property market will continue to retain its resilience, as evidenced over the years despite numerous economic and other challenges, says Dr. Golding.

First-time buyers have a great opportunity to enter the property market in Gauteng suburbs, especially Pretoria and Johannesburg, with average asking prices below R1.5 million – according to Property24 Trends Data.

Johannesburg

Nadia Aucamp, Broker Manager and Legal Liason of REMAX All-Stars says there is a substantial difference in the average property price in Johannesburg depending on the suburb – as an example, the South of Johannesburg tends to be somewhat more affordable than the more expensive Northern Suburbs per square metre.

“A further important consideration pertaining to the average price of a property is the security offered by the property. The average price of a property within a well-secured estate or complex tends to, without exception, be higher than a traditional direct street access property or less secured complex.”

This two-bedroom, two-bathroom townhouse in Bassonia offers a modern kitchen and access to a communal pool and gym. It is on the market for R1.25 million – click here to view.

Purchasers and property investors in general also consider the suburbs surrounding Johannesburg when considering purchasing a property. The more affluent suburbs of the east and west rand are becoming more popular – this could potentially be attributable to the recent trend of increased flexibility concerning working arrangements.

Joburg has currently *2 590 new property listings, according to Property24 Trends Data, with the average asking price being R1.35 million.

The average sale price per erf for 2021 was about R1.3 million, while Section Scheme Units average sale price for the same period is R675 000.

The latest residential listings on Property24 show that three-bedroom homes are most widely available, at an average list price of R1.45 million. Sellers in the area fall within the 36-49 years (33%), while 32% of buyers fall within the same age group.

Click here to see all the sale and listing price trends in Johannesburg

“We have furthermore seen a trend of purchasers upgrading their primary residence whilst electing to rent out their current property (often a section title unit) rather than selling – this to provide a secondary income stream in uncertain times,“ says Aucamp.

This townhouse in Glenvista offers two bedrooms, one bathroom, and a clubhouse with a pool and gym. It is on the market for R1.08 million – click here to view.

The recent rise in the interest rate has not deterred investors from seeking solid property investment opportunities, says Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg.

“We are finding that investors are more tentative in the market at the moment and, although we are still seeing steady activity in the buy-to-rent sector in the lower price bands (between R800 000 and R2 million), many investors are being discouraged by factors like the exceptionally high levies in many complexes and estates and the rising cost of renovation,” he says

“Traditionally in high demand, fixer-uppers have taken a noticeable back seat due to the high costs involved. Feedback from our regular contractors is that the price of all raw materials is rising almost daily as are the prices of fittings and fixtures.”

There is, however, strong interest from investment buyers in suburbs close to busy commercial hubs. With the rising cost of fuel, people are once again looking to live near the workplace if they can’t work remotely.

Hyde Park

This is one of Johannesburg’s most elite suburbs, but even though it’s home to the top echelons of South African society it offers investors a broad range of properties. Its tree-lined streets house luxurious historic homes on generous stands, newer security estates, and also more affordable apartment blocks.

It has a bustling commercial area with a multitude of high-end shops and many businesses have offices here so the rental market is very active, says Odendaal.

This townhouse in Hyde Park has two bedrooms, one bathroom, a private garden, communal pool, and is close to many amenities. It is on the market for R1.299 million – click here to view.

Apartments range from R1.2 million for a one-bedroom unit to R4.5 million for a spacious three-bedroom flat, and modern townhouses and clusters are priced between R3.2 million and R8 million, although there are a few luxury options closer to R20 million.

Although many of the houses are priced above R10 million, there are quite a few options in the R5 million to R10 million price band, notes Odendaal.

Melrose

A highly sought-after suburb, it has an eclectic mix of homes, from modern apartments to stately mansions and the vibrant business centre is very popular with locals as well as residents from neighbouring suburbs who work and shop there.

At the entry-level are several very accessible options, from around R1.8 million for a two-bedroom apartment and one-bedroom townhouses from just over a million and older houses from around R7 million.

At the top end of the market are modern apartments from R4.5 million which boast wonderful views, R11 million for an expansive five-bedroom townhouse, and beautiful freestanding designer homes in the R10 million-plus price band.

Randburg

This newly-renovated two-bedroom and bathroom unit in Randburg has a private balcony and spacious living areas. It is on the market for R750 000 – click here to view. 

Randburg has many bustling hubs and the suburbs nearest those are proving the most popular at the moment, including Cresta, Northcliff, and the Robins. Prices in these areas are very accessible, especially at the entry level where there are many property options available to suit all lifestyles, says Odendaal.

Pretoria

Pretoria has currently *5 875 new property listings, according to Property24 Trends Data, with the average asking price being R1.45 million.

The average sale price per erf for 2021 was about R1.475 million, while Section Scheme Units average sale price for the same period is R887 500.

The latest residential listings on Property24 show that three-bedroom homes are most widely available, at an average list price of R1.599 million. Sellers in the area fall within the 50-64 years (30%), while 38% of buyers fall within the 36-49 years age group.

Click here to see all the sale and listing price trends in Pretoria

Pretoria east

This part of the city has become very popular with investors in recent years for several reasons, including an excellent infrastructure and top-class amenities which include hospitals and clinics, excellent schools and also a multitude retails outlets and good malls, sports facilities as well as scenic green spaces and parks, says Samir Jhina, Lew Geffen Sotheby’s International Realty Principal for LGSIR in Pretoria.

Arcadia

This apartment in Arcadia offers two-and-a-half bedrooms, one full bathroom, and is close to amenities. It is on the market for R549 000 – click here to view.

Close to the academic and cultural hub of the city, Arcadia is one of the city’s oldest suburbs and home to many historical buildings – including the Union Buildings and the Presidents’ residence.

The suburb also houses Loftus Versfeld Stadium where local and international rugby, as well as soccer matches, are played and the University of Pretoria is nearby, so it’s an excellent destination for investment buyers looking to enter the short-term and student rental market, says Jhina.

Arcadia offers a broad range of properties starting at R550 000 for a two-bedroom apartment, R1.4 million for a four-bedroom townhouse, and R1.3 million for a compact three-bedroom house, ranging up to around R9 million for a stunning five or six-bedroom family home on large grounds.

Wapadrand

Known for its prolific birdlife and boasting the largest variety of indigenous trees found in any Pretoria East suburb, Jhina says Wapadrand is an urban oasis and, with most of the homes well-secured, residents enjoy a tranquil lifestyle.

Properties are very well-priced, with three-bedroomed townhouses priced from around R1m, two-bedroom houses from around R2 million, and large family homes priced between R3 million and R5.8 million.

Monument Park

Monument Park is one of the more sought-after, upmarket suburbs in the leafy eastern parts of Pretoria and, being one of the older suburbs, the properties and erfs are large, the area tree-filled and the streets wide.

This 81sqm apartment in Monument Park has two bedrooms, one bathroom, and a lovely garden. It is selling for R750 000 – click here to view.

Ideally located close to the CBD with access to major thoroughfares, Monument Park just south of the Groenkloof Nature Reserve, and Waterkloof Golf Course.

At the entry level one can buy a two-bedroom flat from R700 000 or a three-bedroom townhouse from R1.4m and for those with larger budgets, houses are priced between R2.6m and R4.5m.

Waterkloof Ridge

Waterkloof Ridge is one of Pretoria’s more established and prettiest suburbs with its Jacaranda-lined streets and eclectic mix of architecture that ranges from older Victorian-style properties to the more recent Tuscan designs.

Located near two major highways that allow easy access to both Johannesburg and the Pretoria CBD, Waterkloof Ridge offers an upmarket lifestyle for discerning buyers.

The once freehold property landscape now includes townhouses priced between R1.5 million for a one-bedroom and R3 million for a three-bedroom unit and houses start at around R3.2 million, ranging up to R16 million for a designer home with all the bells and whistles.

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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24’s geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions. 



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