A number of Gauteng suburbs have proven to be solid investments in the last five years, according to real estate agency Seeff.
The group said that it has seen strong performance in Sandton, Randburg and Bedfordview – with many of these suburbs still offering good value for money.
Below Seeff’s experts elaborate on the areas that were good investment spots a couple of years ago and name the suburbs they believe are hot now.
Charles Vining, Seeff’s MD in Sandton, says that Illovo and Fourways are two stand-out suburbs.
“While the median price of a sectional title apartment in Illovo was R850,000 in 2009, this price has doubled in 10 years.
“The median price currently is R1,650,000 – taking one, two and three bedroom properties into account,” he said.
Vining said that Illovo is continuously increasing in popularity because of the prime location in terms of proximity to Rosebank and Sandton.
The area also offers “golden oldie” buildings where apartments can be purchased at reasonable prices for living or for renovation purposes.
Vining added that Fourways is an enormous geographic region and includes a collection of suburbs where annual sales exceed R4 billion.
Of the 2,500 plus homes that sell in Fourways each year, prices can range from R600,000 to R15 million.
Bedfordview and surrounds
David Ingle, principal of Seeff Edenvale & Bedfordview says that Linbro Park and Modderfontein around the planned Gautrain station will without a doubt be some of the hottest investment property in Gauteng over the next ten years.
“These areas will present opportunities in the residential space with cluster homes, sectional title apartments and high rise apartments eventually on offer as well,” he said.
“In addition to the residential opportunities, there will also be numerous commercial, retail and office development opportunities.”
Ingle added that people who bought in Greenstone in the past and continue to buy here has a sound investment.
“Greenstone and surrounding suburbs have been referred to as the ‘New Sandton’ and it is especially capturing the imagination of young first-time buyers.”
Byron Cornish, a Seeff licensee in the JHB CBD, says anyone who has invested into this area is realising great rental yields.
“The ability to raise finance is also becoming easier as the major financial institutions are valuing the assets a lot closer to OTP prices, which is providing sustainability of capital appreciation for investors”.
Cornish says a shortage of student accommodation offered by tertiary institutions close to the Johannesburg city centre have resulted in an almost unprecedented demand for student rentals in Braamfontein and surrounds – as long as investors provide the correct product to the demanding market.
“The high rentals to purchase prices create a huge opportunity for investors chasing cash flow yields over 10% net,” he said.
Eloisé de Stefanis, operations & sales director at Seeff Randburg & Roodepoort, says demand for property in Randburg – especially the suburbs bordering Sandton – is high due to the good value for money and accessibility to the Sandton CBD.
“Greenside offers both close proximity to Sandton and excellent growth in property values. Values increased from an average of R1.8 million in 2009 to an average of R3,110,000 in 2019,” she said.
“Demand for properties near good schools is still recognised with the Linden area showing incredible investment opportunity. Investors that recognised Linden a few years back would appreciate this gem in their portfolio today.
“Freehold properties escalated from a mere R1,450,000 for an average home in 2009 to a current average price of R2,975,000. Even more impressive is sectional title units which started at an average price of R780,000 in 2009 and is now averaging at around R2,125,000.”
De Stefanis said that Jukskei Park also provides an excellent investment opportunity with lower rates and taxes than Sandton and accessibility to the Fourways Business node.
“Here average property prices increased from R1,090,000 in 2009 for a home to R2,050,000 in 2019,” she said.
Kibler Park & Johannesburg South
Duane Butler, Seeff’s regional manager for the Northern Division says Brackenhurst and Brackendowns, two suburbs of Alberton offer great value for money with an average selling price of around R1.5 million for Brackendowns and around R1.7 million for Brackenhurst in the current market place.
“The average selling price was around R900 000 some ten years back and I believe it will be around R2 million in the next two to three years.”
Butler said that suburbs close to Soweto like Naturena, Meredale, Ridgeway and Mondeor will also experience good overall growth as supply and demand will push the average selling prices up.
“All of these suburbs are well located, close to the CBD and have good roads and transport infrastructures,” he said.