Sectional title market driving Centurion demand
Category Industry News
The demand for sectional title homes in Centurion has increased radically over the last five years with a concentration of new developments as well as extensions on existing developments occurring across the area.
Nick van Dyk, Adrienne Hersch Properties Pretoria Branch Manager, says areas like Rooihuiskraal North, Midstream Estates, The Reeds and Eco-Park, have undergone extensive development in order to meet increased demand in the area.
He says proximity to national roads and the Gautrain has made Centurion very attractive to all classes of buyers.
“Centurion is ideally situated between Johannesburg and Pretoria, making it extremely attractive to young professionals, first-time buyers as well as more established buyers. Newer developments with less expensive price tags are in extremely high demand among first-time buyers and young professionals.”
Nick says first-time home buyers are generally finding the market in Centurion less expensive in comparison to other suburbs in Pretoria and Johannesburg.
“Sectional title units in Centurion do not come with the premium of similar properties in Johannesburg and Pretoria. Areas like Heuwelsig, Kosmosdal and Eco-Park are fast becoming very attractive to buyers entering the market as they are significantly less expensive than other areas.”
“Lock-up-and-go sectional title units that are close to major roads and the Gautrain are currently selling for between R 700 000 and R 1.5 million. One-bedroom apartments range between R400 000 and R600 000, while two-bedroom apartments can fetch between R650 000 to R1 million. Two-bedroom houses sell for between R 800 000 to R2.2 million, while three-bedroom houses range between R 1.5 million to R5 million,” he adds.
He says while several of the newer developments have been priced for the lower to middle income market, many higher-end developments have also sprung up in the area in recent years targeting more established buyers, specifically families looking for convenience, modern features and security.
“More established buyers are expressing significant interest in areas such as The Reeds and Midstream Estates. At the same time, in the older areas of Centurion, there’s robust demand for properties offering lots of space and big gardens, particularly among families with young children.”
Nick says the rental market in the area is also performing well with yields from developments in areas such as Rooihuiskraal North and Midstream Estates offering investors fantastic returns.
“One-bedroom apartments are being rented for between R4000 and R8000, while two-bedroom apartments are being let for between R6000 and R10 000. Two-bedroom townhouses are going for between R8500 and R15000 while two and three-bedroom houses are renting for between R15000 and R30000.”
Author: Adrienne Hersch Media Team