Data from an established South African bank has revealed that Pretoria is the most popular location for many first-time buyers across the country.
First National Bank (FNB) is the oldest bank in South Africa, with origins dating back to 1838, and their monthly ‘Property Barometer’ is recognised as the de-facto House Price Index within the country.
Figures shown in their May Property Barometer reveal that Pretoria is a preferred home location for first-time buyers because of its higher representation of civil servants who have enjoyed above-inflation wage increases in the past few years.
FNB Property Economist Siphamandla Mkhwanazi states: “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,”
Research has shown that first-time buyers accounted for 31.7% of the market at the end of 2017 in Pretoria, while Johannesburg recorded 21.3%.
However, despite the impressive first-time buyer figures, Johannesburg is the economic hub of South Africa and remains popular, having seen a number of new developments come onto the market ranging from R750,000 to R1.6 million.
According to data from 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 & West
Data from Pam Golding reveals that there has been an increase in demand for properties priced below R1 million in both Pretoria Central and Pretoria West, with over 300 transactions concluded overall in Pretoria West in 2018 and Q1 2O19.
Pam Golding Area Specialist Tendai Garaba explains: “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.”
Tendai’s figures show that first-time buyers purchase two to three-bedroom apartments (priced R475,000 to R800,000) with some of the most popular areas, including Lotus Gardens and Westview Security Estate.
Generally, suburbs such as Lotus and Westview prove popular because of their affordability and security, as well as being ideally located close to main roads with plenty of public transport, schools and health facilities.