Pretoria’s property outlook for 2016 according to Seeff
Stock shortages, bigger demand due to new developments and fewer days on the market before a property sells are all part of Seeff’s predictions for the property industry in the greater Pretoria area for 2016. Gerhard van der Linde, Seeff’s Managing Director in Pretoria East, says although their performance this year has been satisfactory, they are optimistic that the market will pick up in the New Year. “A lot of new commercial development is taking place in Pretoria East including the Menlyn Main development that is set to become Africa’s first green city. This mega development will include commercial space, retail space, shopping space, a gym, residential apartments, a hotel, an entertainment complex and scenic parklands. In addition to this many suburbs in Pretoria East are receiving a complete make-over due to the Gautrain and the new Rapid Bus Transit system and this will undoubtedly also create a greater demand for residential property”. Van der Linde continues that their branch has had great success with selling properties faster than other agencies, especially when they have secured sole mandates on those properties. “The average property stays on the market for 94 days, but we have been able to reduce the selling period to only 32 days in the case of sole mandates”. With regard to rentals he says that the area has a strong demand for particularly sectional title properties in the sub R1,5 million price range where investors are buying with the specific intention of renting out. “In general the Pretoria East Market is well balanced with a steady supply of stock and constant demand. Home prices have increased modestly between 5 % and 7% compared to last year, but sellers’ expectations are still too high. The highest sale we have concluded this year was for R9.5 million”. Lynne de Vos, Seeff’s Managing Director in Pretoria North says prices here have increased by 2%. “Our branch is up 3% compared to last year and my prediction is that the Pretoria North market will grow next year in especially the R800 000 to R1.2 million price range. The area is vast and we are certainly experiencing stock shortages in some areas, but many developments are planned for 2016 that are all within a 15km radius from the city centre. There is a big demand for properties that are closer to town”. De Vos says with rentals the price range that is most in demand is definitely around R6000 per month. “Rental rates begin at around R3500 per month for a one bedroom apartment and could go all the way up to R25 000 per month for a fully furnished home in an estate. The highest sale made this year was for R5.2 million”. Steve van Wyk, Seeff’s Managing Director in Centurion says like in the case with Pretoria he expects the market here to pick up in 2016, but that they are also struggling with stock shortages. “I believe the market will pick up by about 6% to 8% each year over the next two years and that the most active price range will remain in the R800 000 to R1.5m price range. He says that they have a high rental demand at all levels, but that the average rental prices range from about R5000 for a one bedroom home, R7000 for a two bedroom home and between R10 000 and R12 000 for a three bedroom home. He concludes that selling prices in Centurion have increased by about 5% and the average amount of days spent on the market for Seeff is 46 days as opposed to 80 days which is the area’s average. The highest sale concluded in Centurion this year was for R11million.