Latest statistics reveal important findings about first-time buyers and tenants in Gauteng
Category Property News
The Gauteng residential market is growing steadily as more first-time home buyers and tenants (typically around the age 34 years old and below) are moving into the suburb and latest trends show that a big percentage of growth is owed to this group. According to property analysis company, Lightstone, over the past 12 years, first-time buyers and tenants have accounted for 50% of all residential activity in Gauteng.
Furthermore, they are contributing to stable house-price growth in the province, particularly in the municipalities of Ekurhuleni, City of Tshwane and City of Johannesburg. New statistics released show annual growth in these municipalities amounted to 3,4%, 5,4% and 3,3%, respectively. While lending institution Ooba, says that first-time buyers make up the biggest percentage of home loan applicants and hold the majority of bond approvals.
And interestingly, the importance of these buyers and tenants are expected to be magnified in the future as census data reveals around two-thirds of South Africa's population is below the age of 35 years old. This means that there will be an even stronger demand from this group within the next decade. And as such, the future of Gauteng looks set for an even stronger property market as more first-time buyers and tenants enter and push up the demand for homes.
Gauteng's booming first-time buyer and tenant market is a result of a myriad of factors, such as affordability and plentiful job opportunities. Many are young professionals, some are starting families while others are bachelors or couples looking for small to medium size homes that are secure.
For example, Pretoria in the City of Tshwane is home to a mix of affordable sectional-titles such as Platinum Manor Estate, Platinum Heights, Waverly Square, Country View Estate, Twee Riviere Lifestyle Estate and 21 Zambezi. The homes within these developments are ideally priced and sized, secure and located near key commercial precincts.
The bustling suburb of Akasia situated in Northern Pretoria has become the chosen destination for first-time buyers and tenants who require modern and newly built sectional-titles with rental rates around R8000pm or below, and for those who are buying, homes priced from R450 000 to R700 000 are very popular.
Agents at CSi Property Group have reported receiving a marked increase in the number of inquiries for apartments and freestanding homes in Platinum Heights Estate, which is situated in the Akasia suburb of Chantelle. The homes here are brand new and boasts granite kitchen tops, energy saving eco-geysers, and 24hr security with access control. It also includes covered and visitors parking and is situated close to a wealth of amenities, including Wonderpark Mall and Tshwane University of Technology. The price of a two-bedroom apartment unit from this estate starts from just R4 950pm, while a three-bedroom house starts from an affordable R7250pm.
Midrand and Kempton Park
The municipalities of Ekurhuleni and the City of Johannesburg are also performing well among first-time buyers and tenants. Suburbs worth a special mention are Kempton Park in Ekurhuleni and Midrand in Johannesburg. Both are showing incredible growth and activity as homes are quickly getting snapped up.
In the Midrand suburb of Noordwyk, you can easily find a two-bedroom apartment for around R685 000 - R750 000. And rentals start from as little as R5400pm from a 1 bedroom apartment and R6300 for a two-bedroom unit. While in Kempton Park prices are slightly lower as you can easily find a one-bedroom apartment for R4200pm or a two-bedroom unit for R5200.
Even though starting prices are very affordable for both Midrand and Kempton Park, this does not mean that luxury, safety and comfort is compromised. For example, for just R4150pm, you can rent a bachelor apartment in a secure complex with patrolling guards. You will also have access to a clubhouse, braai facilities and landscaped walkways.
Gauteng's residential market is undoubtedly reliant on first-time buyers and tenants to fuel growth and inspire new developments. If you're looking to buy or rent your first home in one of the province's bustling municipalities, speak to the helpful agents at CSi Property Group today.
Author: CSi Property Group