The property analysts, Lightstone, who use Deeds Office figures, have shown in their latest report that in the Pretoria East suburbs of Garsfontein and Moreleta Park, residential property prices have risen consistently – well ahead of the national average – ever since 2009. It was then (in 2009), while other areas were experiencing 15% to 25% drops in values.
Since 2009 the average price of a Garsfontein sectional title unit has risen from R675,000 to R872,000 and the average price of a freehold home in this area has grown from R960,000 to R1,350,000. In the same way at Moreleta Park the prices have risen from R786,000 to R922,000 for sectional title units and from R1,431,000 to R1,660,000 for freehold homes.
Andre Theron, the Rawson Property Group’s franchisee for the Garsfontein franchise and Andre Bruyns, the Rawson Property Group’s franchisee for the Moreleta Park franchise have now amalgamated the two franchises and are now known as Rawson Woodlands. The new territory covers about 14,300 homes in total, 49% of which are sectional title.
Recent trends in Pretoria East, said Theron, have shown an ever increasing demand in property, which is now far exceeding the supply. This has created a sellers’ market in which sellers are in a more commanding position and therefore tempted to overprice or to hold onto their properties in the justifiable belief that their capital value is increasing every month.
“While there is obviously truth in these assumptions,” said Theron, “the typical price rises are still below 10% per annum.”
The exceptionally strong demand throughout his area, added Theron, stems from the relatively pristine new look of its homes, retail centres and all other facilities.
“We are now a fully established area in which very little new development is possible, but at one stage recently these Pretoria East suburbs were the fastest growing in Tshwane. What makes them particularly popular now is that we have good schools (primary, secondary, state and privately owned) and excellent sporting and communal facilities such as golf courses and gymnasiums.”
Lightstone’s analysis, said Theron, reveals that the monthly household incomes in these areas are between R24,000 and R43,000 and this means that the biggest demand for the next year or two is likely to remain in the R800,000 to R1,6 million bracket. These figures, he said, must be taken to apply to both sectional title and freehold homes.
“The truth is, however, that we do offer a very wide diversity of prices. Sectional title units here can range in price from R500,000 to R2 million, while the houses are priced at anything from R1 million to R7 million. Nevertheless demand is strong across the board, except possibly in the top bracket.”
David Jacobs, the Rawson Property Group’s Northern Regional Manager, said that within the next 24 months he expects this very dynamic team to control a significant market share of the Garsfontein/Moreleta Park property market. They have, he said, initiated one of the most impressive marketing campaigns the group has ever launched, with extensive advertising backed up by sponsorship of rugby, hockey and netball teams at local schools. They are also embarking on regular on-going training of their 15 agents and he sees the number of these increasing to 30 by the end of this year.
“All in all, this is proving to be one of the most vibrant franchises we have,” said Jacobs, “and the good news is that they have a flourishing market in which to operate, despite serious stock shortages.”