Pretoria is the preferred city for first-time property buyers
Economy / 15 July 2019, 7:30pm / Dhivana Rajgopaul
DURBAN - Pretoria is a preferred home location for many first-time buyers according to the FNB Property Barometer May 2019.
The city is the preferred home location mainly because it has a higher representation of civil servants who have enjoyed above inflation wage increases in the past few years.
"Pretoria has also for some time been relatively cheaper when compared to Johannesburg. Furthermore, the ease of travel between the two cities with improved road network, and the Gautrain has positioned Pretoria as an attractive destination with value for money homes, said Siphamandla Mkhwanazi, property economist at FNB.
Although more first-time buyers are choosing Pretoria, Johannesburg, being the economic hub of South Africa will always be in demand, notes Mkhwanazi.
First-time buyers accounted for 31.7 percent at the end of 2017 in Pretoria, while Johannesburg recorded 21.3 percent by the second quarter of 2018.
"Pretoria is truly an opportunity filled city, vibrant with a number of property types to choose from. It is also affordable with homes priced from R400 000 hence demand remains high in the city. Apart from it being the capital city of South Africa, it has a number of local attractions, shopping and medical facilities, some of the country’s top schools are located in the city. Pretoria is a city to call home.," said Julian Scott, Pam Golding Properties Pretoria area specialist.
Buying property in Pretoria
Indications are that first-time buyers are starting to take advantage of what appears to be a buyers’ market, particularly in the middle to higher-end segments.
"First-time buyers are mostly looking for low maintenance places, lock-up-and-go convenience in secure environments so they would buy into townhouse complexes and secure estates, and mostly modern. Depending on their budgets, they buy one bedroom and up to three bedroom apartments," sad Scott.
Mkhwanazi points out that what is traditionally regarded as the lower-end of the market, the R250 000 to R500 000 price bracket seems to attract disproportionately more first-time buyers, followed closely by the R500 000 to R750 000 price bracket.
According to Pam Golding Properties Pretoria area specialists, Pretoria is experiencing an increase in the number of first-time buyers purchasing properties priced from R400 000 in Pretoria Central, and up to R1.6 million in Centurion and Moreleta Park.
Affordable properties in Pretoria Central and Pretoria West
Tendai Garaba, Pam Golding Properties Pretoria Central area specialist explains that there has been an increase in demand for properties priced below R1 million in Pretoria Central and Pretoria West, with over 300 property transactions concluded overall in Pretoria West in 2018, and during the first quarter of 2019.
“The popular price bracket is between R400 000 for one bedroom apartments in areas such as Danville, west of Pretoria Central, and from R500 000 to R990 000 for properties in secure estates including Westview Security Estate, Lotus Gardens Security estate and Elandspoort in Pretoria West.”
Generally, suburbs including Arcadia, Hatfield in Pretoria Central, as well as Lotus Gardens Security Estate, and Westview Security Estate in Pretoria West are popular with first-time buyers because of affordability and security.