Johannesburg’s housing market rising in the East

Johannesburg’s housing market rising in the East

This modern five-bedroom home is in La Como Lifestyle Estate in Boksburg, an 80ha lifestyle estate with 9ha of wetlands, a lifestyle centre, four children’s parks, a nature trail, a gym, a restaurant and an office park.

Johannesburg East has emerged as a strategically well-positioned location for home owners and businesses – close to the City of Ekurhuleni’s Aerotropolis, which is being developed around OR Tambo International Airport.

Says Nelson Ferreira, Pam Golding Properties area principal in Johannesburg East: “This region can no longer be considered a Cinderella region to the more ‘glamorous’ northern suburbs of Johannesburg. With house price growth of 3.1% from January to December 2018, the East Rand metro housing market is also consistently outperforming the Tshwane and Johannesburg markets where house prices are growing by 2.6% and 2.2%.

“Underpinned by all classes of people from a broad range of backgrounds and cultures, this broad-spread, cosmopolitan area is in demand because it provides value for money across all price bands and categories. Here you can gain entry to the property market from a low base, and acquire property right through to the luxury market.”

Johannesburg East incorporates the areas of Kempton Park, Bedfordview, Benoni, Boksburg, Brakpan, Linksfield, Edenvale and Greenstone, and home owners tend to be younger as it caters to a growing base of aspirant first time home buyers.

Says Ferreira: “Residential property prices in Johannesburg East range from R400 000 to R40 million, and you can buy two-bedroom, two-bathroom homes priced from R650 000 and three-bedroom, two-bathroom homes with double garages can be had for R1.4m.

“The demand for homes in this more accessible price bracket is being driven by the growing black middle class upgrading from the surrounding townships. In Kempton Park, six out of 10 of our sales are concluded with such buyers who are motivated to invest in their own homes, with prices currently averaging at around R1m. From there they upgrade to more expensive homes as they move up the career ladder, including luxury homes in Serengeti Golf and Country Estate.

“Home buyers derive many benefits from living and working in the heart of an international airport and commercial hub, which, coupled with the support of a growing black middle class, is boosting the volume of sales through various price bands, including the popular R800 000 to R2.5m bracket.”

Adding to the appeal, Johannesburg East is home to some of the best private schools in the country such as St Andrew’s, St Benedict’s, King David’s, Saheti, St Dominic’s as well as Curro schools and government schools.

“Catering for the growing demand for homes, large tracts of open land between Benoni, Boksburg, Kempton Park, Edenvale and Greenstone have been developed with clusters, townhouses and shopping centres. One of the biggest drivers in the Gauteng East property market is sectional title property, as you can buy a quality two-bedroom, two-bathroom sectional title unit for R850 000 – ideal for first-time buyers, as well as a high specification two-bedroom, two-bathroom unit for just R2.6m in the Infinite development in Bedfordview,” says Ferreira.

“We see tremendous room for property growth in the sectional title market over the next five years, facilitated by proximity to schools, fibre connectivity, security and easy access to key amenities such as shopping centres, highway networks, gyms and other facilities.”

In the luxury market in Benoni, sectional title units such as The Links in Ebotse Golf and Country Estate are priced from R4.75m for two-bedroom, two-bathroom luxury apartments.

The newest development on the East Rand is The Neighbourhood, which Ferreira says provides a clear indication of investor confidence in the area.

“This new residential lifestyle development in the historic Linksfield suburb, next to the Huddle Park Golf Course, consists of 315 stands priced from R2m to R4.2m. Phase one was sold out in days, underlining the demand for prestigious living within a secure environment, close to important amenities. This development also features a sectional title component called The Lofts and a shopping centre, The Square.

“Apart from Ebotse and The Neighbourhood, other existing luxury developments in the region include Serengeti Golf and Country Club Estate in Kempton Park, Thornhill Hill Estate in Modderfontein and La Como Lifestyle Estate in Boksburg. All are in demand due to their prestigious address, security and lifestyle offering, proximity to top schools and transport networks by car or Gautrain and value for money in comparison to Gauteng North.”

La Como, an 80ha lifestyle estate with 9ha of wetlands, a lifestyle centre, four children’s parks, a nature trail, a gym, a restaurant and an office park which is home to leading companies, is located between Benoni, Kempton Park and Boksburg.

Says Ferreira: “With luxury freehold build and package homes available from R3.25 million, capital appreciation is such that an existing home is already on the market at R15 million, which indicates the potential for lucrative return on investment.

“There continues to be much development activity along the Gauteng East corridor. We’ve had tremendous success with the Infinite development, comprising 200 sectional title units in front of Eastgate shopping centre. And our success in the prestigious over 50s heritage Lifestyle Estate is attributable to the developer’s vision in bringing to market a well-priced sectional title offering tailored for retirees.

“The southern phase consists of two villages, the Oaks and The First, as well as Heritage House, comprising 128 sectional title two and three storey units and penthouses. With the first two phases transferred to the new owners, there are currently over 100 residents, while phase three is under way. In addition, a northern phase will be developed soon, with over 300 opportunities.”