Dyer said that the Free State comes out on top for first-time homebuyers, with applications in the first quarter of 2023 sitting at 71.4% of the total applications received by Ooba home loans, followed by Mpumalanga at 59.4%.<\/p>\n
“While affordability continues to dwindle amongst rates-sensitive first-time homebuyers, we see healthy activity levels in this market sector in the Free State. In March alone, 67% of the total home loan applications received for the region were from first-time homebuyers.”<\/p>\n
The area’s capital Bloemfontein has enjoyed increased property sales over the past few years, said Dyer. The city registered its highest peaks over the past decade in 2021 and 2022.<\/p>\n
Property group Lightstone reported that 522 sectional title units and 282 freehold homes had been sold in Bloemfontein this year alone.<\/p>\n
The graph below shows the percentage of first-time buyer applications over the last six months:<\/p>\n
Mpumalanga<\/strong><\/p>\n Regardless of it often being considered a tourism hotspot, Mpumalanga is presenting an excellent investment opportunity with heightened demand for investment and rental properties,<\/p>\n Dyer said the capital Mbombela is also enticing first-time homebuyers, particularly in new developments like Matumi Valley, Green Valley Estate and Intaba Estate.<\/p>\n The average purchase price of first-time homes continues to rise – from R955,000 in Q1 of 2022 to R1.038 million in Q1 of 2023 \u2013 an increase of 8.7%.<\/p>\n Dyer said the close-knit estate living communities have been firm drivers of the region’s growth.<\/p>\n “Estates already account for nearly 40% of total housing stock in Mbombela, once again underpinning the need for security, a sense of community, amenities and a ‘lock up and go’ lifestyle.”<\/p>\n There was a decade high of 803 freehold homes sold in 2021 and 741 freehold homes in 2022.<\/p>\n “Over the past 12 months, 116 new plots were sold \u2013 107 of which were located in estates.”<\/p>\n Investment and rental percentage applications over the last three months:<\/p>\n Limpopo<\/strong><\/p>\n The northernmost province of Limpopo has enjoyed an average purchase price jump of 4.7% in less than a year.<\/p>\n According to Dyer, as of March 2023, the average purchase price in the area is R1.5 million.<\/p>\n “The price of properties for first-time buyers has also seen a sharp uptick in a short time, rising from R918,500 in July 2022 to R1.295 million in March 2023,” said Dyer.<\/p>\n As a result, the average first-time buyer price in Limpopo is higher than the national average purchase price – a good indicator of property confidence in the region.<\/p>\n The CEO said that the town of Hoedspruit has experienced momentum in the price of freehold homes and vacant land over the last three years.<\/p>\n For semigrants that leave major metros for smaller towns, the care-free lifestyle is what sets Hoedspruit apart, said Dyer.<\/p>\n The graph below shows the increase in sales prices in Hoedspruit over the last decade:<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/05\/image007.png\")
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