House price inflation in Johannesburg is showing above-average growth in pockets around the city, from the East Rand to the Northern Suburbs. In the east of the city, sectional title and freehold are performing well, according to Michael van Heerden, manager of Seeff – Springs and Brakpan. In these markets, he says, house price inflation is sitting between 6,78% and 10%.
The picture is better when the past five years is considered. “Springs freehold property has increased by 25,91% and sectional title by 18,06%,” Van Heerden says, “while Brakpan freehold has seen growth of 25,75% and sectional title of 29,43%.” The R450,000-to-R600,000 band is dominating these transactions.
The greater Sandton area has witnessed impressive growth in freehold property and above-average sectional title performance. Says Jonathan Davies, manager at Pam Golding Properties Hyde Park, “Over the past five years (2011 to 2015) the freehold average price in the greater Sandton area has risen from R2,462m to R3,332m, or 26%. The sectional title average price has risen from R1,063m to R1,258m, or 15%”. Davies attributes the trend to general market dynamics and to the popularity of Sandton as an address.
