Midrand's upper market on the rebound
Category Property News
The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
So says Grahame Diedericks, Manager for Lew Geffen Sotheby’s International Realty in Midrand, adding: “The market here demonstrated impressive resilience until the third quarter of 2017 when the accelerating political turmoil intensified consumer caution and investors became increasingly wary of making larger fixed investments.
“Although the entry to mid-markets remained active and homes priced up to R2.5 million were still selling well, there was a perceptible downturn at the upper end, especially in the freehold sector and buyers remained tentative until the end of the first quarter of this year.
“However, as the dust began to settle after the political changes in December, we saw promising renewed investor interest spark across the board and, since April. there has been a significant upturn in activity in the higher price bands.”
Diedericks adds that the rental market in Midrand followed a similar pattern: “During the first quarter of the year we started to see an increase in low-end rentals and moving into the second quarter, we experienced a resurgence in interest from corporate clients in the upper range.”
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty attributes Midrand’s resilience and quick recovery to a number of key factors.
“One of the reasons the sales market has remained more stable than most is the fact that Midrand offers a very broad spectrum of properties, from apartments starting at a very accessible R700 000 to luxurious, state-of-the-art homes in secure gated communities like Stein City Parkland Residence and Waterfall.
“Another is the ongoing and extensive commercial development in the area which is attracting many new residents who not only want to live near work but are also drawn by the fact that they can get more bang for their buck than in Johannesburg’s more established northern suburbs.
“And, with the upgrade of convenience centres such as Kyalami on Main and Crowthorne Shopping Centre, the development of Kyalami Corner and the ever-expanding Mall of Africa and surrounding Waterfall Centres have, Midrand has become one of Johannesburg’s shopping and lifestyle hotspots.”
Geffen adds: “Being equidistant from Pretoria and Johannesburg and easily accessible from both the East and West Rand, it is perfectly positioned in the heart of Gauteng.”
It’s therefore no surprise that Lightstone data has revealed that the majority (51%) of all buyers in the past year ending 31 May were aged 35 and younger while 38% were aged 36 to 49 and only 11% were older than 50 years of age.
Diedericks concludes: “Ultimately, there is still a lot of choice in this current market with developers coming up with new and impressive ways to target the investors in the current market place. That being said, position is vital when considering such an investment and the units situated in convenient locations close to schools and amenities are achieving good prices and are actively selling.
“But with many indications pointing to a more positive year if the political climate continues to improve, the main challenge will be to present correctly priced homes to the market place.”
Author: Lew Geffen Sotheby's International Realty