Sectional-title and Estate Homes, the New Benchmark for Residential Living
Category Property News
Throughout 2017, the South African real estate market had felt the pinch of political uncertainty, a tough economy and the rising costs of living. Although 2018 has also seen its fair share of turmoil, the majority of real estate experts agree that the outlook for the housing market has significantly improved amid the appointment of new political leadership and the strengthening of economic activity.
In particular, Gauteng has enjoyed a healthy upturn in the market, and this is largely attributed to the relative affordability of homes, alongside high demand from first-time home buyers.
These home buyers are not only driven by affordability, they have also entered the market for lock-up-and-go homes that are secure, and closely situated to their place of work and key amenities. It is for these reasons that sectional-titles and estate properties have become the most “in-demand” property types as they adequately cater to such requirements. In fact, it can be argued that these homes are rejuvenating the Gauteng residential market.
With optimism running high in the province, local and foreign developers and investors have zoned-in on this activity, and have responded favourably by injecting new capital into new developments of this nature.
Nationally, sectional-titles and estates are growing in stock and value. According to Lightstone reports, sectional-titles account for 11.8% of total residential stock, and this is valued at 14.9% of the market. While, estates are comprised of 335 000 homes that are collectively worth R800bn. Not surprisingly, with increasing demand, house price growth for these homes is outstripping growth in freestanding prices.
Case Study: Midrand
Midrand, in northern Johannesburg, perfectly encapsulates the current trends taking place in the province. Since 2000, the suburb has experienced a surge in new sectional-title properties, with developments increasing by an estimated 550%. Furthermore, Midrand is witnessing notable increases in lifestyle estates as these offer the best security, onsite facilities and easy access to schools, shopping malls and commercial precincts.
A common sentiment among industry experts is that Midrand has become a key growth node that has overcome the economic slump. The property market here is exceptionally active, with several sales records being regularly achieved in mid- and upper-market suburbs, including Kyalami, Vorna Valley, Halfway House, Carlswald, Sagewood and Summerset.
Underpinning Midrand’s residential strength is the phenomenal growth of the commercial sector, which has attracted professional and young first-time buyers, as well as investment buyers who are capitalising on this lucrative and well-established northern suburb.
Latest data shows that within the past year alone, almost 50% of buyers were below the age of 35-years-old. Furthermore, the upper end of the market saw most buyer activity in sought-after lifestyle estates in Kyalami such as, Riverbend Estate. Whilst, the rental market experienced solid growth on a month-to-month basis due to heightened investor activity.
Suburbs such as Midrand are undoubtedly the primary reason for Gauteng’s booming residential market. And due to high demand from professionals and investors, the province provides a diverse spectrum of buy-to-own or buy-to-let property options. In Midrand, you can uncover modern apartments, and state-of-the-art estates and sectional-titles that meet various budgets, sizes and personal requirements.
As Gauteng recovers from last year’s political uncertainty and economic slump, various suburbs are emerging as strong residential destinations for home buyers and investors alike. To find out more about Midrand homes listed with CSi Property Group, speak to our helpful and expert agents today.
Author: CSi Property Group