Gauteng property market showing signs of early recovery
Gauteng may be at the front line in the property market to receive the benefits of renewed foreign investment in South Africa. Research shows how first-time home buyers are beginning to rouse a formerly stagnant property industry in key areas around the province.
Those seeking property for sale in Gauteng may well have been reading recent reports about the beginnings of the recovery of the South African property market. Emerging data shows that area around Gauteng province are becoming the most sought after due to the variety of purchase prices as well as the surrounding amenities.
Towards the end of 2017, Pam Golding Properties (PGP) agents identified political uncertainty (26.9%) and tough economy (27.4%) as the key obstacles to activity in their areas along with lack of affordability (18.4%), difficult accessing finance (13.8%) and shortage of stock (13.6%). With the rise of the Ramaphosa government, however, it appears that much of the landscape has changed.
Rupert Finnemore, PGP Gauteng Regional Executive, has noted several key areas within Gauteng which show some of the best growth potential, and are being targeted by savvy first time home owners. He stated that the greater Fourways, Bryanston and Randburg areas are all trending property investment areas and should remain so. The Parks area (Parkwood, Parktown North, Parkview and Parkhurst) are all maintaining buyer interest, in part due to the wide variety budgets that they cater to and the convenience of the amenities around the area.
Statistics show that first-time home buyers are a significant force in the current market as it begins to recover. According to data published by Ooba, “nearly 55% of the mortgages extended were made to first-time buyers”. The trend is also due to the fact that there may be more job opportunities in Johannesburg compared to other regions.
With the promise of the Ramaphosa government to root out corruption generating new interest from foreign investors and the associated recovery of the local economy, the housing market is reacting to the new political situation favourably.
