Gauteng’s property market presents a mix of opportunities with varying trends across its regions. Despite modest inflation figures, the demand for property remains strong, especially among first-time buyers and those seeking investment opportunities. Lara-Rachel Spronk, Franchise Sales Manager at Just Property Head Office, looks at the current market and the opportunities available.
Overall, Gauteng’s annual property inflation increased slightly from 0.1% in Q3 2023 to 0.3% in Feb 2024 (with Johannesburg at -1.4%, Tshwane at 0.7%, and Ekurhuleni at 1.7%).
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. And it is clear that demand for property continues to be high in Gauteng despite all the focus on semigration. Resale activity in 2023 in Cape Town was 17% of the entire country, but Johannesburg, at 16%, was not far behind. In fact, our Just Property Heritage team had record sales in May 2024, and we have plans to expand further in Gauteng to meet the rising demand.
Whether you’re a first-time buyer or a seasoned investor, Gauteng’s property market holds the potential for substantial rewards. By collaborating with industry professionals, buyers can navigate the market successfully and uncover lucrative opportunities, but there are some important rules to remember.
Back to basics
Early GenZ-ers 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. There are great opportunities in Gauteng, and we’ll get to those, but it’s important to repeat the basics.
If you’re considering buying a home in Gauteng, know that the Gauteng residential property market is currently a dynamic landscape, presenting both challenges and opportunities for potential buyers and investors.
As buying a home is probably one of the most important decisions and investments you’ll ever make in your lifetime and a significant financial investment, you need to ensure that you do your research.
Keep the following in mind:
- Understand the market. Analyse and investigate the area that you are looking into – growth potential, safety, amenities, future development etc. 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.
- 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.
- 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. Then, most importantly, do not max out your budget or buy for the full amount that you qualify for. A lot of people make that mistake, and when interest rates increase or disaster hits, they are already over-extended. Also, ensure that you keep an emergency fund available for all things relating to your property.
- Work with professionals. Ensure that the agent you are getting advice from and the attorneys appointed to your transfer all work with the level of professionalism and transparency that is needed to guide you on this journey.
Interesting developments
There is a massive demand for new developments in Gauteng. If I were looking for a new home or another investment property, I would look at the following developments and suburbs that are currently extremely popular:
- Waterfall City (Midrand)
- Steyn City (Fourways)
- Menlyn Maine (Pretoria)
- Sandton Gate (Sandton)
- Whispering Pines (Centurion)
- Randburg Square (Randburg)
- Greenlee (Linbro Park)
- Rosebank (Johannesburg)
Yielding results
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 universities like the University of the Witwatersrand, this area has a strong demand for student accommodation.
- Fourways – A rapidly developing area with good amenities and a growing business sector, attracting both professionals and families.
- Hatfield – Proximity to the University of Pretoria makes this area a hotspot for student accommodation.
Menlyn – Known for its commercial development and shopping facilities, Menlyn attracts a mix of professionals and families.
Remember, thorough preparation, professional guidance, and a keen eye for emerging trends are crucial for success in Gauteng’s vibrant property market, but there are opportunities aplenty for the savvy investor who has a trusted property professional at their side.
For more information on Just Property, please visit www.just.property. Follow Just Property on Facebook https://www.facebook.com/JustPropertySA/ and LinkedIn https://www.linkedin.com/company/just-property-group/
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Author: Zané Neethling from Paddington Station PR on behalf of Just Property.
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