Young first-time homebuyers are looking to purchase apartments and townhouses that are ‘move-in’ ready and modern, open-plan homes that may require only basic cosmetic work, says chief executive of Eazi Real Estate, Brynn Janeke.
Janeke said that these buyers are targeting homes in the sub-R2.5 million price band, with the most popular suburbs being:
- Diep River
- Blue Downs
- Kuils River
- Surrey Estate
- Churchill Estate
- Grassy Park
- Parklands North
- Table View
Against the background of a residential property market that is still a buyer’s market, most purchasers are still looking for good deals, said Janeke.
“The low-interest rates have certainly increased the buyer pool, but there remains a strong demand for well-priced homes.
“While some areas in Cape Town are experiencing more downward pressure on price, our experience is that homes below R1.5 million in the South-Eastern Suburbs are moving quickly, and similarly, properties below R2.5 million in some areas in the Northern, Southern and Western Seaboard Suburbs are sought after with well-priced homes selling rapidly.”
Janeke said that the continued high demand from buyers, in general, is reflected in sustained positive movement in the market and, apart from the higher demand for homes in specific areas.
He added that a few different groups of home buyers most active at present.
“Firstly, as mentioned, there are young buyers who can now qualify for bonds with low-interest rates and who want to acquire their own homes rather than rent.
“Then there are others who are also taking advantage of the low-interest rates in order to move to more affluent suburbs which are closer to work and have better schools, for example, South Eastern Suburb homeowners from areas such as Mitchells Plain relocating to Southern Suburbs areas like Plumstead, Ottery and Diep River, and upgrading from area to area in Northern Suburbs.”
Janeke said another group of buyers are looking for larger homes or two-bedroom apartments to allow more space to work from home, while another segment comprises larger family groups who are buying properties of a larger erf size which allow for multi-dwelling properties such as a granny flat or apartment for adult children or an elderly parent.
“The market is definitely competitive for well-priced properties, and we are achieving full asking prices and even seeing competing buyers pushing up prices in some instances,” he said.