The best suburbs in Joburg to invest in property according to agents
If you were wise enough to invest in property in an area like Braamfontein, Bryanston, Sea Point or Observatory in the Cape a few years ago you would have plenty of reason to smile right now, says Seeff Property Group.
Not only have most of these suburbs shown significant property price growth, but they are becoming more sought-after by the minute.
According to data group Lightstone, the average price for a sectional title unit in Braamfontein in 2007 was R365,000, while it is R480,000 today. Although the price escalation is only 23% at this stage, the gentrification of this area is an ongoing success and Braamfontein is fast-becoming a hot spot where penthouses of up to R4 million are now selling to creatives and young professionals, said Seeff.
In Bryanston, the average sectional title property would cost you R1.2 million while the average freehold property R4.5 million in 2016, but in 2007 you could pick up sectional title for only R830,000 and freehold for just short of R3 million.
Seeff said that property prices in the affluent suburb will continue to climb as living in, or close to Sandton is an ideal for many and there seems to be no end to the commercial expansion and new employment opportunities arising in the area.
In Cape Town, Sea Point in particular has seen notable capital value accumulation over the last few years on the back of rising prices in the neighbouring suburbs. The average selling prices on the Atlantic Seaboard have tripled over 10 years and values are up by a significant 67% over the last five years.
In Observatory in Cape Town, sectional title prices have more than doubled from R568,000 in 2007 to R1.258 million in 2017, as is the case with freehold from R892,000 in 2007 to R2.288 million today.
Seeff asked several of its principals across Gauteng which suburbs they predict will become the future property hot spots.
David Ingle, principal of Seeff Edenvale & Bedfordview said that Linbro Park in Sandton and Modderfontein around the planned Gautrain station are expected be some of the hottest investment property in Gauteng over the next decade.
“These areas will present opportunities in the residential space with cluster homes, sectional title apartments and high rise apartments eventually on offer as well. In addition to the residential opportunities, there will also be numerous commercial, retail and office development opportunities,” Ingle said.
Charles Vining, Seeff’s principal in Sandton, said Parkmore and Kyalami are two of the best areas to invest in.
“Parkmore is on the doorstep of Sandton and is popular with young families who may be working in the Sandton CBD. It has a park-life appeal and it’s fast attracting trendy foodies to the local restaurants and coffee spots. Local security companies have worked hard to maintain a secure environment that appeals to family and the local sports club has had several upgrades recently. This deliberate suburb upliftment will result in steady price growth over the next few years,” Vining said.
“The racetrack has always been a significant attraction, but now that the Mall of Africa has opened up just down the road, there’s more reason to want to be in the neighbourhood,” he said of Kyalami.
“Large corporations are ahead of this already, having built mega-offices in the area and others begin breaking ground soon. As these corporate head offices open, the attraction of living nearby in a suburb full of choices will drive prices up and in 10 years an investment here will pay off handsomely,” Vining said.
Chris Hajec, Seeff’s principal in Randburg, says there are very few residential suburbs left in Randburg in which full title properties are poised to enter a stage of significant gentrification.
“First time home buyers are increasingly hard pressed to find entry level price points available for full title homes for R900,000 to R1 million and therein lies the potential for a disproportionate rise in appreciation in the last holdout suburbs left in that price range.”
Duane Butler, Seeff’s regional manager for the Northern Division said Brackenhurst and Brackendowns, two suburbs of Alberton, offer great value for money with an average selling price of around R1.5 million.
“This average selling price was R900,000 10 years ago and I believe it will be around R2 million 10 years from now”.
Butler added that suburbs close to Soweto like Naturena, Meredale, Ridgeway and Mondeor will also experience good overall growth in 10 years as supply and demand will push the average selling prices up.
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