While house price growth in Gauteng has shown tentative signs of recovery in the last 12 months, the residential property market in the greater Midrand region has, in terms of demand, steadily continued its upward trajectory on the back of rapid development in the area.
“As many commuters will have noticed, new businesses and office headquarters are constantly springing up along the N1 freeway,” says Rupert Finnemore who heads up Pam Golding Properties Gauteng region. “It’s part of a remarkable process that is seeing Johannesburg and Pretoria merging into one vast mega-city and Midrand is right in the middle of this. With the land between the two cities being developed relentlessly, we are likely to continue seeing ongoing demand for property in Midrand for commercial, retail and residential use into the foreseeable future.”
“As well as offering investors a range of property options, catering from the first-time buyer through to the upper-end investor, homes in the region tend to be more affordable than, for example, in the northern suburbs of Johannesburg, and are perceived to offer good value. In addition to offering a good standard living, Midrand supports a highly diverse residential property market with something for everyone.”
Nadia Moosa, Pam Golding Properties Midrand manager agrees, noting that an apartment in the Midrand area can still be acquired for R650 000, while at the top end of the market an exclusive seven bedroom mansion in Beaulieu is currently being marketed by Pam Golding Properties for R39 million. “There are popular exclusive estates in the area such as Waterfall, Kyalami Estates and Saddle Brooke, suburbs such as Vorna Valley and Noordwyk in which well-priced freehold family homes are on offer, small holdings, numerous townhouse complexes in Noordwyk and Sagewood, and an increasing number of sectional title apartments,” she adds.
According to Moosa, an added attraction of Midrand is that it is centrally situated between Johannesburg and Pretoria with three onramps and easy access to the N1 freeway. It is, furthermore, well serviced by public transport such as the Gautrain and the dedicated Gautrain and Mall of Africa bus services.
“With large numbers of businesses, commercial enterprises and office developments having been established in the area in recent years, Midrand is one of the most rapidly developing regions of Gauteng. This has encouraged investment across the board, which has, in turn, served to stimulate the residential property market in Midrand.”
According to the recently released Pam Golding Properties’ Index, at a national level, the affordable housing band has continued to outperform other segments of the market, with growth in property prices continuing to gather momentum, while growth in house prices of larger freehold properties has slowed somewhat.
“Approximately half of the sales in the Midrand area, is to buyers under the age of 35, which serves to demonstrate the increasing importance of this market in the region and the demand for quality accommodation among young up-and-coming professionals, executives and entrepreneurs,” points out Moosa.
Moosa, who has some 17 years experience in the area, agrees that many investors are attracted to Midrand because of the excellent value that is on offer. “While the more affordable market is important within our large and diverse region, we have noted that homes across the board, including those within the middle and upper markets, remain in demand,” she adds.
“Well run upmarket estates such as Waterfall have been a resounding success and have served to kindle home values in neighbouring suburbs such as Vorna Valley and the greater Kyalami area. This has come hand in hand with the development of facilities such as the Mall of Africa, Netcare Waterfall City Hospital and Reddam Waterfall City School in the area”.
“Initially the growth of the region was undoubtedly spurred by the development of facilities such as Vodacom World, and today there are a plethora of other large businesses, enterprises and office blocks in the area”.
“So, besides being well situated with easy access to the whole of Gauteng, residents have every convenience, including a number of excellent schools and shopping and entertainment centres like the Mall of Africa, Kyalami on Main and Crowthorne Shopping Centre, at their doorstep. Conference and expo facility Gallagher Estate, where SADC has its headquarters, has only served to further enhance the appeal of Midrand”.
“PwC is developing a most impressive R1.5 billion 26-story headquarters in Waterfall City, which is due for completion in early 2018. With traffic on the increase within Gauteng, many people want to live closer to their places of work and so developments such as the PwC headquarters, which will be home to some 3 500 PwC employees, are only likely to spur further demand for quality rentals and residential property in the greater Midrand area,” observes Moosa.
“Sectional title townhouses, duplexes and apartments have been particularly popular in Midrand in recent years and numerous complexes and apartment blocks have consequently been built to keep up with demand. As a result, the majority of properties in the region are today held on a sectional title basis.”
Moosa says the increased demand for these types of homes reflects a national trend, which has seen sectional title home prices at a national level remaining more resilient than other forms of property ownership. This is outlined in the Pam Golding Properties’ Index for the first quarter of 2017, which reflects an increase in value in sectional title homes of some 5.5 percent in March 2017.
“There are a number of reasons for the popularity of these types of homes in Midrand,” she observes. “In the first place, it highlights the first time buyer trend. As households come under increasing financial pressure it fulfils the need of those wishing to downscale to more compact and affordable properties, as sectional title homes are perceived to offer greater affordability”.
“In addition, security and amenities have come to be of greater importance to residents, and complexes, estates and apartment blocks enable residents to collectively contribute to the provision of such services, enabling a convenient ‘lock up and go’ lifestyle. As a result of all of these factors, sectional title homes are becoming an increasingly popular option in Midrand,” explains Moosa.
Pam Golding Properties Midrand office, which places an emphasis on forming close personal relationships with both buyers and sellers to guide them through the process of selling or purchasing a home, has an impressive range of residential properties in its portfolio in Midrand, according to Moosa.
“We are, for example, marketing a two bedroom apartment in Noordwyk for R680 000. There is also a three-bedroom cluster home in Halfway Gardens being marketed for R789 000, while a freehold, three bedroom home in Vorna Valley is on offer for R1.7 million. At the higher end of the market is a four-bedroomed home in Savanna Hills Estate for R3.7 million, a five-bed in Kyalami Estates for R5.4 million, and a five-bedroom luxury residence in Waterfall Estate for R10 million”.
“This illustrates that there is something to fit every pocket and match every lifestyle within Midrand,” says Moosa.
“With development in the Midrand region continuing at an undiminished rate, the residential property market is, by all accounts, set to grow from strength to strength in the coming years in terms of both home values and demand,” she concludes.