MAIN IMAGE: CJ Vogel, Principal of Jawitz Properties – Boksburg; Nico du Plessis chairperson of RNS Group (Residential Network Systems); Neville Brits, Broker/Owner of RE/MAX Dazzle in Kempton
Stretching from Alberton in the west to Springs in the east, and south down to Nigel, Ekhuruleni includes areas like Boksburg, Benoni, Bedfordview, Germiston, Kempton Park, Linksfield and Modderfontein. Collectively, Ekurhuleni also known as the East Rand, is considered to be the transport hub of there Gauteng containing several major arterial roads, and OR Tambo.
CJ Vogel, Principal of Jawitz Properties – Boksburg, says that the proximity of OR Tambo makes it easy for individuals to connect with both local and global markets, and so there will always be demand for residential properties, regardless of the current economic climate.
Nico du Plessis chairperson of RNS Group (Residential Network Systems) agrees, explaining that “While we are currently experiencing sales volumes only reaching targets of about 65% – 70% in most areas around the country, we are very privileged on the East Rand in that we haven’t experienced the same decrease in sales, we are seeing our volumes dropping to about 70% – 75%. What we have definitely seen is that the commercial activity and the interest in Ekhuruleni has remained quite high, because of the airport, and the area being linked to all the main arterials. People are still moving here, we’ve got good schools, infrastructure is functioning relatively well, and while we experience the same problems as the rest of the country, I believe it’s probably not to the same degree”.
Vogel shares that are several suburbs that are seeing buyer demand:
- Boksburg: Sunward Pard, Parkdene, Ravenswood, and Beyers Park
- Springs: Selcourt, Petersfield, Selection Park, and Strubenvale
- Brakpan: Dalview, Kenleaf, Dalpark,
- Benoni: Farramere, Rynfield, Northmead, Morehill
Du Plessis believes that there “Is a very strong movement towards increased security – security villages and private estate are in high demand. Even if there’s only a perception of better security, we’re finding people seeking out those areas”.
Both du Plessis and Vogel agree that first-time buyers are finding Ekurhuleni particularly attractive with du Plessis sharing that “Around 53% of our sales are to first-time buyers with an average mortgage of about R1.5 million”, whereas Vogel shares that in his experience first-time buyers are looking for two-bedroom sectional title units priced under R700 000.
Starter families are looking for full-title properties ranging between R1.3 and R2.5 million, and Vogel says that the high end of the market takes slightly longer than average to sell, but at the right price every property does enjoy attention.
Boksburg can also look forward to a large injection of affordable housing with the launch of the On Riverbend Lifestyle Estate in Parkdene. On Riverbend will consist of 1,600 units, starting at R735 000 for a 2-bedroom 1-bath apartment.
Conveniently located next to the Cinderella Dam, with a private school (Curro) less than 200 meters away, security is a top priority, with 24-hour security and biometric access for residents’ safety and peace of mind. In case of load shedding, each apartment comes with a free inverter to power essential devices during power outages.
“The sheer volume of units being constructed is incredible and it’s very exciting, especially for Brakpan in terms of investment potential for the town,” says du Plessis.
It’s not all smooth sailing though as Vogel and Neville Brits, Broker/Owner of RE/MAX Dazzle in Kempton Park and surrounds, note that the number of sellers buckling under financial pressure is increasing. “Our markets rely heavily on bond finance and therefore any adjustment in interest rate will slow down the sales rate. At present, almost 90% of our clients require some sort of finance and the more expensive money is to lend, the slower the sales rate will be. It also has increased the number of sellers coming into the market because they cannot afford their bonds due to the higher rate. Many clients in our market have 85% to 95% loan-to-value so they feel the pinch much quicker than people who have more equity in their home loan or much lower loans,” says Brits. Vogel agrees, predicting that in the near future, most sellers will be people downscaling due to rising interest rates.
