Fewer sales in Execution for Springs and Brakpan
Category Sales in Execution
Execution sales refer to sales where a bank sells your property (in a public auction) to recover the money it lent to you.
Michael van Heerden, Seeff’s Manager in Springs and Brakpan, says the number of execution sales that took place in both these suburbs combined in 2018 were only 40.
“There are a number of reasons for the decrease in execution sales in these areas including the National Credit Act – the Act made it more difficult to apply for credit and to obtain reckless and unqualified loans.
Another reason is that fewer listings were loaded with simulated asking prices and there was also an increase in Assisted Sales (also known as distressed sales) facilitated by banks. Assisted sales are more beneficial for both the bank and the seller than execution sales as there is an agent involved often securing a more market related price for the property”.
Van Heerden continues that the median house price of a full title home in Springs was R770 000 in 2017, while it increased to R797 000 in 2018 and even though the median price of a full title home in Brakpan decreased from R930 000 in 2017 to R890 000 in 2018, prices here have showed a steady increase since 2015.
“We are definitely expecting an improvement in market sentiment in both areas after the elections in May. In Springs and Brakpan buyers are hesitant to enter the market, while sellers are eager to sell their property – especially with regard to investment property.
We still experience a great demand for three bedroom and two bathroom full title homes with gardens in more secure areas priced between R650 000 and R750 000. Whenever a property like this is listed it will sell in less than three months in the majority of cases - depending on the quality of the home of course.
We recently sold a three bedroom and one bathroom home in Selection Park in Springs listed for R630 000 in less than three days.”
Van Heerden adds that rentals in both these areas have increased with 10% year on year and that 98% of their tenants pay their rent on time.
“Demand for quality rental stock in both Springs and Brakpan are in big demand. Big family homes in good areas can fetch up to R15 000 per month, but the average rental for a standard three bedroom, two bathroom home is around R7000 per month”.
Van Heerden concludes that Springs and Brakpan, like much of the rest of the country, are too experiencing a buyer’s market.
“We are seeing some investors benefiting from this buyer’s market as they are purchasing properties for under market value and then renting them out for an amount that covers all their expenses. If this is carefully managed these properties can turn a profit within five years while the asset can also grow with 5% annually.”
Seeff Springs & Brakpan also services the Nigel area. Properties listed here at the moment range from R325 000 to R1 738 000 million.
This two bedroom and two bathroom townhouse in Sharon Park, Nigel has a rental price of R7 500 per month.
Author: Tanya van Buuren Botma