Unpacking Pretoria’s Residential Market
Category Property News
Pretoria, located in Gauteng’s northern region, is a hive of activity that is showing signs of rapid growth, a high demand for residential properties and heightened development. As new home-buyers enter the Pretoria market in droves, the region is now positioned as a favourable contender to compete with the likes of Sandton.
In particular, Pretoria East, has poised itself as the most valuable area in Gauteng, and in the process, has replaced Sandton and other wealthy suburbs. Pretoria East is one of the busiest markets and currently holds top-spot in Gauteng in terms of, the number of properties sold and total value generated. Within the last two years the province has been at its height having topped the market with a turnover of R8 billion in 2016 or approximately 7 500 property transactions. While Sandton followed with R6.4 billion in turnover.
As a whole, Pretoria is renowned for its high-quality municipal governance that has enabled it to retain excellent infrastructure, good service delivery, and in general, an exceptional quality of life for its residents. In fact, this standard of living and town management was encapsulated in 2014 when it was voted as the best place to live in the province by the Gauteng City-Region survey.
Increases in Property Values
Pretoria’s residential sector comprises a dominant and stable freehold market (50.33% of all residential stock), an established sectional-title market (35.76%) and a rapidly growing estate market.
According to latest Lightstone reports, both freehold properties and sectional-titles have witnessed phenomenal increases in property values within the last decade. Freeholds increased in value by 62.79%, from R860 000 to R1.4 million. This remarkable appreciation is attributed to a high demand for homes particularly among families who require well-sized property, adequate yard space and a close proximity to schools and commercial precincts. Most buyers are attracted to the R800 000 – 1.5 million price bracket, with most homes being sold on average of R1.1 million.
Closely following freeholds are sectional-titles which have also shown healthy appreciation within the last decade. This market has increased in value by 51.96%, from an average worth of R510 000 in 2007 to R775 000 by the end of 2017. Sectional-titles are expected to grow in value by the close of 2018 as it is currently the most “in-demand” property type due to widespread appeal, unequivocal security and affordability. Primarily, these homes attract small families, couples and new home-buyers.
An emerging market that has directly placed Pretoria, and in particular, the eastern quadrant, as a worthy competitor with Sandton, is its estate sector. Industry professionals who seek unparalleled luxury are most attracted to these homes and they are willing to snap these up for well-above the R3 million price bracket. Besides offering around the clock security and premium features, estates are ideal for those who want to buy into a specific lifestyle.
Dormehl Phalane Property Group has mandated a selection of properties from the Zambezi Country Estate, which accommodates medium to big families. These homes range in size from 3 – 5 bedrooms, and all are privileged to a range of facilities including various play areas for children, exquisite walkways throughout, 24-hour security and access controlled gates. In addition to this, the estate lies close to all major routes, schools, shopping centres and hospitals.
A Tuscan double story house is currently on the market from Zambezi. This house is spacious and open-plan designed with the most premium finishes. It comprises four big bedrooms, 3.5 bathrooms, a designer granite kitchen, two entertainment areas each with its own unique features, a landscaped garden and a swimming pool with a water feature.
As Pretoria continues to reach new pinnacles it will be interesting to see how it transforms to meet the requirements of an ever-growing urban populace. With a bustling residential market attracting new people each year, Pretoria is well on its way to becoming the new hub for residential (and commercial) needs.
To find out more about the available properties in Pretoria, you can speak to our experienced and accomodating agents from Dormehl Phalane Property Group who will help you uncover your perfect home in this leading town.
Author: Dormehl Phalane Property Group