Tips to navigating Gauteng's growing property market. Picture: iStock
As early Gen-Zs are looking to make their first home purchases, millennials are wondering about moving into a larger home or putting a toe in the property investment waters.
Lara-Rachel Spronk, Franchise Sales Manager at Just Property Head Office says Gauteng’s property market remains strong, as it presents a mixture of opportunities with varying trends across the province.
Spronk says most first-time buyers dominate Gauteng’s property market despite modest inflation figures.
She says the province’s annual property inflation has increased slightly from 0.1% in Q3 2023 to 0.3% in Feb 2024, but this has not stopped people from entering the market. “Inflation is influenced by a number of factors, not least a legacy of load-shedding and political uncertainty in an election year, so I see these numbers as positive.”
Comparing Cape Town and Johannesburg, resale activity in 2023 in the latter was at 16%, while in Cape Town it was at 17%. She adds that it is not a surprise that Johannesburg’s resale activity wasn’t far off from Cape Town’s, as there are still great opportunities in the City of Gold.
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It is important to go back to basics when buying a property. She explains that making a decision to purchase is one of the most important investment decisions one will ever make, thus it is vital to do the necessary research before taking the decision.
“It is important to understand the market. Analyse and investigate the area that you are looking into – growth potential, safety, amenities, future development etc.” Before making the purchase, look at what the area offers and decide if the amenities are in line with what your needs are likely to be over a period of seven to ten years.
She adds that it is important to have your financial house in order. “Ensure that your credit score is looking healthy, put aside a healthy deposit, and understand the full scope of what your monthly commitment will be when buying that home, including monthly property rates, utilities, registration and transfer costs, moving costs, maintenance of the property, insurance needed etc.”
Another tip she gives is to get pre-approved. “Before looking at a single showhouse or clicking on a property to view it, get your pre-approval so that you know what you qualify for in terms of the bond repayment.”
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She says they have noticed that there is a massive demand for new developments in Gauteng. She advises those looking into buying to look into the following developments and suburbs that are currently extremely popular:
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“Property is the best way to build a legacy and bolster generational wealth. With that in mind, investors should be looking at the areas where yield is highest:”
Sandton – “Known as the financial hub of South Africa, it’s a prime location for both residential and commercial investments. There is always a high demand for rental properties from professionals working in the area.”
Braamfontein: Close to the University of the Witwatersrand, this area has a strong demand for student accommodation.
Fourways: She describes this to be a rapidly developing area with good amenities and a growing business sector, attracting both professionals and families.
Hatfield: Close to the University of Pretoria, this area is a hotspot for student accommodation. Menlyn – “Known for its commercial development and shopping facilities, Menlyn attracts a mix of professionals and families.”
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