“The market in Pretoria East is currently relatively balanced between supply and demand for both sectional title and freehold property, but it is heading towards an increase in stock levels which may eventually result in a buyers’ market”, says Gerhard van der Linde, Seeff’s Principal in the area.
Although there is a higher demand for sectional title than for freehold property in Pretoria East, freehold is still popular and this branch is only experiencing vacant full title properties in instances where those properties are overpriced.
Price ranges that buyers show most interested in range from R800 000 to R2 million, but there is also fair activity in luxurious estates such as Mooikloof, Silver Lakes and Woodhill and areas such as Waterkloof where property is often priced upwards of R20 million.
Where rentals are concerned all types of properties are in demand, from one bedroom units to large homes in golf estates, but the greatest demand is for rentals of R10 000 and below.
Some two bedroom units in the eastern suburbs are priced from as little as R5500 per month for stack units, but at the same time corporate rentals in guarded estates can fetch upwards of R60 000 per month.
A suburb like Waterkloof for instance has traditionally been a suburb of large properties and the average rental price of a standard family home with four bedrooms, a pool and three entertainment areas costs between R25 000 and R35 000 per month.
There is a tremendous amount of commercial development taking place in the areas surrounding Menlyn Mall, inclusive of the Menlyn Main development which includes a casino. All suburbs in the proximity of Menlyn like Garsfontein, Menlo Park, Alphen Park, Newlands, Constantia Park and Ashlea Gardens are in high demand as a result of the job opportunities created here.
Menlyn Main is set to become Africa’s first green city and 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 commercial development, 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.
Demand for accommodation in areas like Garsfontein, Moreleta Park, Faerie Glen, Brooklyn and the Lynnwoods remain popular and when a property is priced correctly, well presented and in a good condition, it should be sold within the first 21 days in the overwhelming majority of cases.
Examples of recent sales concluded by Seeff Pretoria East in a short period of time include a home in Waterkloof Ridge that sold in one day of listing for R7,4 million (at 97% of the asking price), a home in Val de Grace that was sold on the same day of listing for the full asking price of R2,3 million and a home in Moreleta Park that was sold within one day of listing for R740 000 (also 97% of the asking price).
In general home prices in Pta East have increased modestly between 5% and 7%, but sellers’ expectations are still too high. The highest sale that Seeff Pta east has concluded in 2016 so far has been for R22 million.
Van der Linde concludes that there was a definite slow-down in the market in July in anticipation of the election, but following the election there has been a significant increase in the number of buyers who are making contact with Seeff.