Continued demand for new residential developments

Pretoria is currently experiencing an increase in new developments, including commercial and mixed-use precincts, says Retha Schutte, Pam Golding Properties Pretoria regional executive.

“The massive investments from large corporations and private companies into the local economy in the region are encouraging to prospective buyers who continue to show huge interest in buying property in Pretoria.”

Pretoria was identified in 2018 by the Brookings Global Metro Monitor report as the fastest growing city in South Africa. Schutte says: “The number of new developments that have come onto the market in the last few years are indicative of the demand for property with a focus on lifestyle and precinct living.”

In addition to the price and location, the prospect of capital appreciation/growth is also important for buyers purchasing in new developments. Nonetheless, we find that even in the current subdued growth environment, properties within the R3 million range are still in demand and tend to sell quickly, notes Schutte.

Pretoria’s newest security estate, Zambezi Manor Lifestyle Estate recorded the highest price growth in Gauteng in 2018. According to Lightstone data, property prices within this estate, considered one of the top in Gauteng, grew by 10.8% in 2018. More than 90% of the 172 properties in the Zambezi Manor Lifestyle Estate, located in the suburb of Derdepoort, are freehold, with prices ranging from R2.2 million to R2.990 million for a three bedroom home with a double garage. Those at the upper-end of the price scale are double-storey homes.

“The estate, which was established approximately two years ago, attracts buyers who are predominantly local government and municipal employees,” says Cobus Vermaak, Pam Golding Properties area specialist. There are still available stands selling from R690 000 and R890 000 for land measuring between 550m² and 580m².

Data from Lightstone shows that the City of Tshwane is showing signs of bottoming out, with house price inflation during the year to July 2019 of 2.3% against 3.0% for national house price inflation, says Schutte. “Precinct development is new to Pretoria, however, the live, work and play lifestyle is proving very attractive to buyers and investors wanting to move away from suburbia and embrace the new urbanism which is a growing trend in major global cities.”

Schutte says new developments within the region are tailored to meet current market demand, and many of these have themes including the ‘live, work, and play concept’, such as the Trilogy Collection in Menlyn Maine, and ‘pet-friendly’ apartments such as Roundabout Brooklyn.

To this end, in early 2020, Pam Golding Properties will launch the first ever green, sustainable, and completely off the grid, exclusive residential development comprising just 23 units. The development, Magnolia Meadows, is located in the established Nieuw Muckleneuk suburb with beautiful tree-lined streets – which completes the feeling of a green and low carbon footprint lifestyle. “Green homes at Magnolia Meadows are priced below R3 million, and we expect demand to exceed supply given the limited number of units,” adds Schutte.

Posted by Denise Mhlanga