Gauteng’s house prices have risen for the first time in three months as consumer expenditure on big-ticket items continued to improve in line with the broader economic recovery.
This has resulted in a 5.3% year-on-year growth in April, after stagnating at 5.1% for February and March, and is the first year-on-year increase since the 5.2% growth recorded in January, according to Standard Bank’s latest house price index.
The improvement in the national property market appeared to track the improvement in other large-expenditure items such as passenger vehicle sales, which increased 6.4% year-on-year in April, from 3.7% year-on-year in March.
“Despite the rather slow start to the year, we still see 2018 house prices stronger than in 2017 due to the turnaround in business and consumer sentiment as well as gradually easing credit conditions,” said Standard Bank property economist Siphamandla Mkhwanazi.
“Building and purchasing activity, which were relatively subdued in the past year, will likely benefit modestly from the upswing in business and consumer sentiment, which would likely have to turn out positively on a more consistent basis before the impact filters through to the housing market.”
According to the Index, stand-alone properties continued to outperform townhouses and flats with the price of the median free-standing home climbing 7.6% year-on-year in April, versus 6.9% year-on-year in March to R1,049,200.
House price growth for flats and townhouses remained relatively flat at 5.8% year-on-year in April, with a median price of R874,700.
What R2 million buys you
While these median prices show that there is still affordability in the housing market, those looking for looking bigger properties (typically with four bedrooms or more), or are looking to live in more popular suburbs can expect to pay closer to the R2 million.
Property website MyProperty recently published a list of what you can expect to buy with a R2 million budget in Gauteng’s most popular suburbs.
Maroeladal, Randburg – 3 bedroom townhouse for R1.6 million
Maroeladal is part of a high-demand property node with many new developments dominating the market. The neighbourhood has a host of amenities available to residents.
Broadacres, Sandton – 3 bedroom townhouse for R1.85 million
In the R2-million or less band, you will find a variety of apartments, penthouses and townhouses on offer. It makes part of a fast-growing node and the lifestyle is buzzing with activity.
Weltevreden Park, Roodepoort – 4 bedroom house for R1.8 million
Open spaces, golf courses and plenty of entertainment options are just some of the reasons residents are attracted to this suburb. With some of homes still coming in under the R2-million price tag your property options are numerous.
Kibler Park, Johannesburg South – 3 bedroom house for R1.4 million
The average price of properties in Kibler Park range widely between R560,000 – R2 million and this coupled with other factors such as its ideal location makes this neighbourhood one of the most popular neighbourhoods in Johannesburg.
Glen Marais, Kempton Park – 3 bedroom townhouse for R1.9 million
Glen Marais is fast becoming the go-to area for those young professionals entering the market. Fibre networks and security estates and complexes are just two of the reasons why it is so popular.
Faerie Glen, Pretoria – 3 bedroom cluster for R1.98 million
As one of the oldest established suburbs in the what is called the old east of Pretoria, Faerie Glen offers the ideal location for those that commute to Johannesburg and an even better location for those that commute to the so-called Eastern CBD.
Furthermore, the amount of top-class schools and amenities make it a firm favourite with family buyers.
Heuwelsig Estate, Centurion – 3 bedroom townhouse for R1.9 million
Property here sells in half the time than in the rest of Gauteng due to the fact that it offers lock up and go units that are extremely sought after, it value for money and are located in close proximity to highways, schools and all amenities.
Mahube Valley, Pretoria North – 4 bedroom home for R860,000
Mahube Valley is a new suburb at the top end part of Mamelodi with a price range from R450,000 to R800,000.