According to Lightstone data, Pretoria achieved some 29,828 transfers worth over R38.7 billion during the 2022-year at an average selling price of R1.2 million. About 75% of all transactions fall below R1.5 million with only just under 6% of the market falling above R3 million.
State of the market
While Pretoria has been one of the better performing metros in Gauteng with prices growing by 91% between 2010 and 2022 compared to 71% for Johannesburg according to the StatsSA House Price Index, the market is shifting, says Gerhard van der Linde, licensee for Seeff Pretoria East.
He says the market is now largely “stuck in low gear” as the higher interest rate and cost of living drives down the demand for residential property. Consequently, the challenges are now mounting for sellers and prices are under pressure as the market begins to shift in favour of buyers with no real house price growth expected.
With more properties likely to hit the market, and fewer buyers incentivised to act, supply will continue to outpace demand. That said, the market is now offering good value for money for those who expect an inevitable upswing in future and are willing to buy now. There is opportunity in every crisis, he adds.
The most active price bands in Pretoria East are between R3 million and R5 million. In the higher price ranges, buyers are not necessarily that sensitive to the interest rate, and higher asking prices are still achieved.
Property remains an excellent and stable investment, outperforming many other asset classes, continues Van der Linde, adding that he strongly recommends that buyers recognise opportunities and continue to put themselves out there on the market. Pretoria East is home to some of the most popular suburbs and estates in the country and offers solid property investments.
The east of the city also has a buoyant rental market which has seen a dramatic increase in the demand for rentals this year according to PG van der Linde, rentals manager for Seeff Pretoria East. Rental rates have seen an increase, but generally only in line with inflation.
Tiaan Pretorius, manager for Seeff Centurion, says the area is also seeing a decline in potential buyers, but there is still a core of serious buyers in the market and with more properties coming into the market, buyers have a large selection to choose from.
The market is showing some sensitivity to the higher interest rate, and sellers will need to ensure their pricing is competitive. He says the Centurion market remains active up to R4.5 million with strong movement in the sub-R2 million range, and for high-end estates, in the R2.8 million to R3.5 million range. Security properties such as townhouses are also selling in the R800,000 to R1.2 million range.
Mr Pretorius further says that sellers must use a reputable agency in this market as properties listed on a property portal in Centurion have less than a 35% chance of selling, as there is a lot more involved in getting a property sold than merely listing it on the internet.
In this market, it is best for serious sellers to work with an agency with a strong current buyers’ book. Buyers should focus on getting preapproval as it saves a lot of time during the transfer process and enables them to submit a more confident offer.
First-time buyers can also still find excellent value in Centurion with sectional title property available below R800,000 in areas such as Doringkloof, The Reeds and Highveld and full title houses from about R1.7 million.
The area is particularly sought-after for its choice of estates such as Centurion Golf Estate, priced from about R2.8 million, Bluevalley Golf Estate from R3 million and Thatchfield Estates from just R1.5 million.
The Centurion rental market remains buoyant with an uptick in high priced rentals from R18,000 per month onwards although the R9,000 to R15,000 range is the most active. Tenants and landlords are finding themselves facing similar increases in living costs, thus we do see an upward movement in rental amounts, but mostly it seems to be on par with CPI.
Writer: Gina Meintjes
