Millennial buyers are piling into the property market despite a preference of renting, says Samuel Seeff, chairman of the Seeff Property Group.
He said that young buyers in the country are in the ‘perfect storm’ due to record low-interest rates and favourable lending conditions.
Seeff’s first-home buyer areas, especially in the main urban areas, all report a surge in buying activity over the last three months, largely driven by the under-35 years olds, he said.
“The transfer duty saving on properties below R1 million and favourable mortgage lending conditions, with some banks still granting full loans, combined with the low interest rate means that millennial buyers can get into a property or suburb, which they might not have been able to afford a year ago,” said Seeff.
Gauteng remains the top choice for affordable properties with the R450,000 to R1.2 million range picking up the bulk of activity currently.
Most areas offer access to good transport networks and a host of amenities including access to shops, banks, schools and more, the property group said.
The most popular areas are outlined in more detail below.
Protea Glen in Soweto from R400,000
Up to 40% of buyers in the Protea Glen area are millennials according to Khosi Sibiya and Phindile Mphahlele, co-managing directors for Seeff Soweto.
The popular price band is R400,000 to R700,000 for first-time buyers. Sibiya said that Protea Glen is an excellent choice for its affordability and amenities and offers great value compared to suburbs in the Johannesburg South region.
Weltevreden Park, Allens Nek and Olivedale in Randburg from R500,000
Randburg offers a vast range of affordable suburbs said Duane Butler, Seeff licensee for the area.
“Areas such as Weltevreden Park, Allens Nek and Olivedale are currently a top choice for millennial buyers as they offer access to great schools and amenities. You also have easy access to the highway and several main arterials.
“Prices start from just R500,000 for sectional title properties making it attractive for first-time buyers,” he said.
Glen Austin and Noordwyk in Midrand from R400,000
Midrand offers great value for those working in Johannesburg, Sandton, Midrand or Pretoria as it offers easy access to the N1 and M1 highway interchanges.
“With prices from just R400,000 in Glen Austin it is no surprise that millennials comprise about 40% of the market, said Seeff.
“Noordwyk is another popular choice offering townhouses and houses from just R700,000 to R800,000.”
Paulshof, Douglasdale and Lonehill in Sandton from R600,000 – R800,000
Charles Vining, managing director at Seeff Sandton said that apartments are especially ideal for first-time buyers, with a broad choice of suburbs to buy in.
Apartments and small townhouses in the R600,000 to R800,000 price band in areas such as Paulshof, Douglasdale and Lonehill are popular.
Townhouses in the R700,000 to R900,000 range are popular in suburbs including Buccleuch, Douglasdale, Sunninghill, Broadacres and Paulshof.
Sectional title property is also drawing interest from buy-to-let investors given the high demand for rental accommodation near the Sandton CBD.
Centurion West, The Reeds and Die Hoewes in Centurion from R500,000
Tiaan Pretorius of Seeff Centurion said that first time buyers are on the rise and are active in the R700,000 to R1 million range if buying on their own, and up to R1.8 million if buying jointly.
“Centurion is an attractive area for affordability with many units close to major highways, the Gautrain Station and all facilities in Centurion City. Popular suburbs include Centurion West, The Reeds and Die Hoewes,” he said.
“The latter for example offers 6,300 sectional title units priced from just R545,000 with about 30% of the market comprising of Millennial buyers.”
Sunnyside, Equestria and Moreleta Park in Pretoria East from R500,000
Equestria and Moreleta Park are ideal steppingstone neighbourhoods for newcomers who wish to establish themselves as real estate owners and may at a later stage upgrade to more expensive property, said Gerhard van der Linde, managing director for Seeff Pretoria East.
“Another popular area is Sunnyside which offers a great location and some 8 474 sectional title units priced from as low as R350,000,” he said.