Boksburg/Benoni to surge post-Lockdown due to affordability
Category Hot Investments
Boksburg and Benoni on the Johannesburg East Rand are attractive middle-class neighbourhoods offering great affordability in the R500 000 to R1,5m price bands.
This combined with the 2.75% interest rate drop and lower transfer duty should be a good boost for buyers as we come out of the Lockdown, says Heinrich Möller, Seeff’s Licensee for the areas.
In addition to being affordable, these areas also offer great amenities. They are self-contained with their own CBDs offering retail, services and amenities including childcare, schools, places of worship, government services and more.
They also offer excellent transport and access to several business and commercial districts around the East Rand as well as Sandton, Midrand and Pretoria for work, further contributing to the popularity of the areas, he says further.
Consequently, we have seen the market shift from older buyers with almost half of all buyers now under 40 years old, generally comprising a mix of young first-time buyers and families who find value in the solid family houses on offer.
The Boksburg property market has remained steady with around 3400 transaction per annum with a brief peak in 2017 of 3800 transactions. While price growth at around the 3%-4% mark over the last few years has been better than many other areas, it also means that prices remain affordable.
Almost 70% of the market is made up of freehold houses and a further 10% is in estates. Sectional title property comprises about 20% and is especially attractive for entry level buyers given that most sales fall below the R800 000 price mark ranging to about R1,5 million.
The bulk of freehold houses are in the R800 000 to R1,5 million range with about 16% of sales above that, but generally up to about R2 million on average.
The Benoni property market has seen a steady 2800 annual transactions on average which is only about 7% below the peaks of 2015-2017.
Here too, sectional title offers the best in terms of affordability and comprise 20% of the market. Sales are mostly below R800 000 with only about a third up to R1,5 million.
65% of all activity relates to freehold houses, generally in the R800 000 to R2 million price bands. Houses in security estates make up about 14% of the market with an average selling price of around R1,965 million with only 15% above R3 million.
It is an excellent time to get into the market here, whether you are looking to buy or sell. While we wait for the Lockdown to lift, sellers can obtain valuations and list their properties. The banks are now practically all back and able to assist with mortgage applications for buyers who can put in offers subject to a viewing once the Lockdown lifts.
Contact Heinrich Möller on 012 682 0050/067 958 3688 or heinrich.moller@seeff.com.
Author: Gina Meintjes
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