Value-for-money price bands in central metro housing markets

Faced with the rising cost of living, the rigours of loadshedding, and a constrained economy, it’s not surprising that many home buyers – particularly first-time home buyers – are seeking value-for-money residences in the more affordable price bands , says Dr Andrew Golding, chief executive of the Pam Golding Property group.

As far as first-time buyers are concerned , according to recent Lightstone statistics, the majority of those gaining a foothold on the property ladder for the first time are seeking homes in the R700 000 to R1.5 million price bands.

Says Dr Golding: “It’s interesting to place residential property sales in the lower price categories in the context of total home sales in South Africa , which Lightstone estimates at a total of 240 888 transfers in 2023, valued at a total of R257 billion.

“Overall, during 2023, the highest number of residential unit sales in central metro markets – across all price bands – was recorded within the central metro in the city of Tshwane, followed by Cape Town.

Source: Lightstone

“On further analysis, Lightstone’s data reveals that central metro markets in Durban and Gqeberha saw 74.2% and 72% of total house sales concluded in the price band below R1.5 million , followed by East London at 64.6%, Tshwane 62.9% and Johannesburg 62.1%, with just 43% of all homes sold in Cape Town last year (2023) priced at less than R1.5 million.”

Almost a third of Cape Town’s (30.5%) and East London’s (30.1%) sales during 2023 were in the price band between R1.5 million and R3 million , closely followed by Tshwane at 28.7%. and Johannesburg 26.9%, with Gqeberha at 24% and Durban 19.6%.

Says Dr Golding: “Notably, Lightstone’s stats for the same period reflect that over a quarter (26.5%) of all residential property sales in Cape Town were in the price category above R3 million , more than double the percentage in Johannesburg (11%). Metrics for the other central metros in this price band were 8.4% in Tshwane, 6.2% in Durban, 5.3% in East London and 4% in Gqberha.

Distribution of total sales by price band (% of total)

Source: Lightstone

Source: Lightstone

Cape Town

Despite Cape Town’s stats indicating fewer sales in the lower price band than other metros, there are affordable, value-for-money homes on offer , for example, in a recent in-house survey, Pam Golding Properties reports that on the Atlantic Seaboard and in the City Bowl, in the price range below R1.5 million, studios and micro units can be acquired; for R1.5 million to R3 million it’s mostly one-bedroom apartments and very compact two-bedroom, one-bathroom units; while between R3 million and R5 million you can purchase more generously proportioned two-bedroom, two-bathroom apartments.

In Cape Town’s burgeoning Northern Suburbs, a two-bedroom apartment or townhouse in Burgundy Estate, bordering the Durbanville Wine Route, can be had for below R1.5 million; in Monte Vista and Bothasig a three to four-bedroom home with pool and entertainment area can be purchased between R1.5 million and R3 million; while in the R3 million to R5 million price range you can buy an appealing three to four-bedroom with ample entertainment space, pool and more in the Welgelegen, Panorama and Plattekloof areas.

In the Mitchells Plain areas such as Lentegeur, Rocklands, Tafelsig, Eastridge and Beacon Valley, the average selling price for a standard entry-level, two to three-bedroom home is around R550 000 while renovated and modernised three to four-bedroom homes sell for around R850 000. In more established areas like Westridge, Portlands, Weltevreden Valley, Highlands Village, Rondevlei Park and Colorado Park where both erf sizes and properties are larger and more modern, selling prices vary from R850 000 to R1.5 million. In Strandfontein, where property prices are around R1 million to R2.2 million, many properties offer swimming pools, attracting business people and professionals.

In Cape Town’s south-eastern suburbs consisting of areas like Lansdowne, Wetton, Ottery, Fairways, Southfield, Heathfield, Diep River, Elfindale, Grassy Park, Lotus River and Zeekoevlei, entry-level homes would normally consist of an apartment priced between R850 000 and R1 million, with freestanding properties ranging between R1.8 million and R3 million and offering four to five bedrooms, modern, double garages and some even swimming pools.

Tshwane

In Tshwane, for up to R1.5 million, you can acquire a two to three-bedroom sectional title unit in a good area with access to schools and shopping centres, while R2 million to R3 million will secure a three or four-bedroom house with study and pool, well situated in an established area with schools and shopping centres. From R3 million is the entry-level price in upmarket suburbs and security estates for three bedrooms and a pool, with R4 million to R5 million offering three to four bedrooms with study, pool and staff quarters.

Gauteng

Also in Gauteng, according to the Pam Golding Properties survey, there are many options below R1.5 million. For example, in certain suburbs of the East Rand towns of Benoni, Boksburg, Brakpan and Kempton Park and the West Rand towns of Randburg and Roodepoort you can still purchase a three-bedroom, two-bathroom 300sqm home – some with swimming pools, whereas in Sandown, Sandton, you can buy a two-bedroom, two-bathroom sectional title townhouse of 100sqm in that price bracket. Also on the West Rand, in Krugersdorp, you will be able to find a three-bedroom, two-bathroom house with double garage in an older established area such as Krugersdorp North and Rant en Dal, or a two or three-bedroom, two-bathroom apartment with double carport in an upmarket estate such as Copperhill Estate in the Homes Haven area – all below R1.5 million.

If you are looking in Gauteng in the price band from R1.5 million to R3 million you can buy an appealing cluster home in Benoni, Boksburg, Brakpan, Kempton Park, Randburg and Roodepoort. For example, a 232sqm cluster home in Kempton Park for R2.5 million, and in Parkmore, Sandton, a two-bedroom townhouse of about 150sqm will cost you R2.5 million. Meanwhile Krugersdorp has a variety of properties in this price bracket from a large five-bedroom, three-bathroom home with double automated garage and pool in a good but older area like Noordheuwel to a three-bedroom, two-bathroom, double garage townhouse in Copperhill.

In Fourways, for the sum of R3 million, you can acquire a three-bedroom, two-bathroom cluster home between 260sqm and 320sqm while approximately R4.5 million will secure a three-bedroom cluster home of about 225sqm in Bryanston. In Brakpan popular Sonneveld Estate offers large properties with four or more bedrooms, while in Krugersdorp this price tag will enable you to purchase a five-bedroom, five-bathroom home with four garages and pool in a top estate such as Featherbrooke Estate, or a brand new four-bedroom, 3.5-bathroom townhouse with double garage in a lifestyle estate like Copperhill.

Durban, in eThekwini

In Durban, below R1.5 million will fetch a one-bedroom apartment in the uMhlanga New Town area or in a complex in Durban North, or Sibaya; for R2 million to R3 million you will be able to buy a starter home of three bedrooms in greater Durban North suburbs such as Glen Anil, Glen Hills or Park Hill; or alternatively, two-bedroom apartments in Durban North and uMhlanga generally fall into this price band. From R3 million to R5 million, you will be able to find an attractive three or four-bedroom family home in Durban North, Glenashley and parts of La Lucia, although the larger homes generally range between R5 million and R10 million.

Gqeberha

In Gqeberha, the Pam Golding Properties survey reveals that for below R1.5 million a three to four-bedroom home in a good area like Lorraine, Kabega or Sherwood can be acquired, with two bathrooms, double garage, a couple of living areas and possibly a pool, or a smaller two-bedroom or maybe three-bedroom home on the beachfront and plenty of townhouse options comprising three bedrooms, two bathrooms and double garage. For R1.5 million to R3 million options include a three to four-bedroom (200-350sqm) home in areas such as Newton Park, sought-after Sunridge, Fernglen, Glendinningvale and Mt Croix – the latter two being close to schools and hospitals. Parts of Summerstrand, Walmer and Mill Park also offer opportunities in the late R2 million price band. For R3 million to R5 million a luxurious four+ bedroom home in good locations in Summerstrand, Mill Park, Walmer and Lovemore Heights can be found, or further afield a very appealing home on the beach in Beachview/Seaview, while in Kini Bay there are some good townhouse options as well as sea-facing apartments of 150-250sqm.

East London

Pam Golding Properties East London office reports that the most sought-after price band is currently between R1.1 million and R1.6 million, which will secure a three-bedroom, two-bathroom sectional title unit in the areas of Beacon Bay and Berea. For less than R1.5 million, for freehold properties, a three-bedroom, two-bathroom home in need of modernising, with a single garage and set on a smaller erf, can be acquired in Berea and Baysville. In Gonubie in this price band you can buy a two or three-bedroom townhouse with single garage or carport close to amenities.

Sales in the R1.5 million to R3 million price bracket are a little slower but you can still obtain a house in Beacon Bay or Gonubie with three bedrooms, two bathrooms, double garage, flat and swimming pool, while freestanding, secure clusters with three bedrooms, two bathrooms and a double garage are selling for approximately R2.9 million. In the price range between R3 million and R5 million you may find a modern home in Nahoon, Stirling, newer areas of Beacon Bay and Bonnie Doon – modernised and with four bedrooms, three bathrooms, double garage and swimming pool and with many off-the-grid features. In this price band, Gonubie offers a three or four-bedroom house with double garage, perhaps a swimming pool, and a flatlet with income-generating potential plus river or ocean views.

For further information visit www.pamgolding.co.za

Posted by The Know - Pam Golding Properties