Sandton’s best performing suburbs
We all know that 2017 was a tough year for real estate with many suburbs facing a decline in sales and house price growth. Even Sandton, an area that has been traditionally strong, faced challenges in the past 12 months. There were, however, a few notable exceptions!
According to this article on Private Property, while the majority of Sandton’s 39 suburbs “reacted predicatbly”, 7 suburbs actually achieved growth in both sectors!
Here are the highlights:
- Steady increases in both sales volumes and pricing
- House sales spiked by 45% from 33 (2016) to 48 (2017)
- There was a 13% increase in the average sale price, from R3.72m to R4.22m.
- House sales and sale prices continued their steady upward trajectory
- 29% increase in sales and 22% price growth
- House sales in Sandown rose from 14 (2016) to 18 (2017)
- Houses averaging R5.29m changed hands, compared to R4.35m in 2016
- Apartments sales drop by 33%
- Apartments saw a 31% price growth from R1.84m to R2.41m
- Rivonia – 33% increases in sales and 9% price growth
- House sales in Rivonia rose from 15 to 20
- The 2016 average sale price of R2.88m increased toR3.16m
- Apartment sales drop by 17%
- Average selling price of apartments almost doubled, soaring from R699 499 (2016) to R1.36m (2017)
According to Lew Geffen, the following factors came into play:
- The ongoing growth of the commercial market in Sandton, which has resulted in a steady influx of people seeking accommodation closer to work.
- First-time buyers remain a key driving force.
The prospects for 2018
- We can expect demand from first time buyers to increase considerably.
- However, many buyers are wary of investing large sums in fixed assets in South Africa.