Pretoria East has replaced Sandton and other wealthy suburbs in Gauteng as the most valuable area in the province, according to a new report by Seeff Property Group.
While Sandton’s market topped R6.4 billion in 2016, Pretoria East boasted turnover exceeding R8 billion with some 7,500 property transactions, it said.
Gerhard van der Linde, MD for Seeff Pretoria East noted that the area ranks amongst the busiest markets in Gauteng and currently outranks Sandton both in terms of the number of properties sold and total value generated.
In addition, while both areas boast a very similar average selling price of just over R2 million per unit sold for the last year, Pretoria’s Eastern suburbs drew more high net-worth buyers and wealthy investors due to the number of luxury homesteads above the R20 million price barrier.
According to Seeff, Pretoria’s most expensive suburbs are all found in this area and include Waterkloof Ridge, Waterkloof, Sterrewag, Brooklyn and Lynnwood
Additionally, there is a high concentration of exclusive security estates that rank among the most sought-after in the country such as Mooikloof Equestrian, Woodhill Golf Estate, Mooikloof Heights, Waterkloof Golf Estate, Silverlakes Golf Estate and The Hills.
Van der Linde added that almost all of the city’s top ten schools are located in Pretoria East including St Alban’s College, Pretoria Boys High, Afrikaanse Hoër Seunskool (Affies), Afrikaanse Hoër Meisieskool and Hoërskool Waterkloof and Pretoria High School for Girls.
How much it costs
According to Private Property data, the area has seen consistent price appreciation over the last few years with the average price for a three bedroom house now standing at around R2.2 million and the average rental at around R16,500/month.
Although the busiest price range is below the R3 million to R5 million price mark, up to a third of all sales now in the R5 million to R10 million price band.
While only a handful of sales has topped the R20 million mark, Seef expected this upper level to shift once the economy improves.
PG van der Linde, rentals manager for Seeff Pretoria East said that the rising status among wealthy buyers and tenants means that it the area now also attracts top end rental rates – comparable to those being achieved in Sandton.
The highest rentals achieved currently are in Woodhill Golf Estate, Mooikloof Equestrian Estate and Waterkloof with rates paid of up to R47,500, R50,000 and R69,500 per month, but rentals can now range to R80,000 for a top end luxury home.
Escalation rates are currently around 6.5% while landlords are achieving yield of around 7% on average, but there are always variations depending on the area and property.