Here are South Africa's 'hero suburbs'
Category News
Despite the ups and downs that have characterised the property market over the past decade and the fact that the country has been facing some serious economic challenges, property investment in the below "Hero Suburbs" have proved to be a good decision regardless.
While security estates have certainly become extremely popular, there are also still many traditional residential suburbs that have stood the test of time despite external factors like the economy.
Here Seeff's experts in Gauteng, KZN and the Cape share their top suburbs.
Gauteng
Edenvale and Bedfordview
Dunvegan
Why? A family suburb located in a boomed enclave between Bedfordview and Senderwood that has well-maintained parks, a highly rated government primary school, several nursery schools and borders on the Glendower Golf Course. It is also close to excellent private schools such as St Benedict's, St Andrews and Holy Rosary and within easy travelling distance from Jeppe Girls and Boys and King Edward VII School.
Prices: Prices have held up well in a challenging market place and is priced between R2 million and R7 million.
Predictions: Dunvegan will continue to be popular with young professional families looking for a nurturing environment to bring up their children.
Randburg
Jukskei Park
Why? Jukskei Park is neighboured by Olivedale and Douglasdale and is for the most part an upper-middle-class suburb, but with more affordable prices than Sandton. The area has a favourable location close to The Dome, Northgate, Fourways and Montecasino and also offers relatively easy access to Sandton. Within easy access of Muldersdrift to the Unesco World Heritage site of the Cradle of Humankind.
Prices: The average freehold is priced just under R2 million making it an affordable option for a big property on a large stand.
Predictions: We predict the home prices to rise like they have done in the past decade. With the opening of Fourways Super Mall this trend will continue and even surpass the current annual increases enjoyed by Jukskei Park.
Centurion
The Reeds
Why? Since 2012 sales prices in the area for full title properties have increased by 48% and by 20% for sectional title properties. The Reeds is close the highway with easy access to JHB and PTA and good schools.
Prices: Average house prices are about R1.3 million to R1.6 million and sectional title units start from R650 000 for a two bedroom unit. Three bedroom units start from R950 000.
Predictions: The Reeds will remain popular and the average sales price will increase slightly above current national averages.
Pretoria-East
Lynnwood
Why? Lynnwood is in close proximity to the highway, shopping malls, top schools and the University of Pretoria. The suburb offers big houses on large stands as well as sectional title complexes that also make it ideal for students and young professionals.
Property prices: The average freestanding home is priced between R3.5 million and R4 million and sectional title is priced between R1.4 and R1.6 million.
Predictions: While Lynnwood will always be in demand the higher prices keep many buyers from purchasing at the moment so we may see a decline in the number of sold properties. There are many new developments coming into Lynnwood and developers are seeing lots of potential in the large stands and even that the area offers.
Kwa-Zulu Natal
Richards Bay
Meerensee
Why? Meerensee is historically located at the high end of the Richards Bay market and close to the beaches and amenities. It continues to attract families young and old and has seen the development of shopping centres, schools and secure complexes. Many employees of the larger Industries in Richards Bay continue to seek homes here and proximity to the Golf Estate adds some prestige to the suburb.
Prices: Sectional title costs around R780 000 for a two bedroom unit in a secure complex and freehold costs around R1.62 million for a three bedroom home with a double garage and a pool.
Predictions: There have been a few projects touted that will result in this suburb remaining Richards Bay most sought after suburb. There is a convention centre as well as a hotel and retail shopping centre precinct on the cards and also another development in the pipeline for the Waterfront. As people move up they would like to settle in Meerensee.
Upper Highway
Kloof
Why? This established area is home to large erven and older traditional homes. Even though many have been upgraded or altered through the years they have not lost their charm. Younger buyers prefer freehold properties in Kloof as they would rather create their own security as opposed to following a Body Corporate's rules in sectional title. Homes here also have large enough erven that it can accommodate parents in granny flatlets - another reason why it is being favoured by younger buyers.
Prices: R1.5 million to R2.45 million. Approximately 232 units are sold per annum.
Predictions: The suburb will continue to be one of the top contenders for value for money. Although it still has a "farm and traditional" feel, Kloof is a vibey village hosting many of KZN's private schooling. Not only will Kloof continue to attract younger buyers, but also those who wish to send their children to one of the top schools.
North Coast
Willard Beach (Central Ballito)
Why? This area has many well established sectional title properties that are over 40 years old and offer excellent value with regards to prime location and affordability. Units here are ideal both for investment purposes and permanent properties and are within walking distance to the shops and beaches. Older units offer the opportunity to be revamped/modernised which will add further growth value to the capital invested.
Prices: R1.5 million to R2.5 million.
Predictions: The flow of semigration is ongoing on the North Coast and older sectional title units will become even more sought during the next five years due to the limited number that will be available. These properties offer a desirable "rentability factor" - for short term and long term letting making them ideal investments.
Umhlanga
Umhlanga Rocks
Why? Umhlanga Rocks has become one of the most sought-after residential areas in South Africa. It is also an international holiday destination attracting thousands of holidaymakers ensuring a bustling rental market. The area is home to many luxury hotels, golden beaches, shopping centres, restaurants, schools and private hospitals.
Prices: R4.5 million up to R25 million for freehold and from R2.3 million to R60 million for sectional title.
Predictions: A general property price growth of 4.1 to 4.7% annually and a higher growth price in sectional title sector and security estates.
Amanzimtoti
Athlone Park
Why? Athlone Park is the first suburb as you enter Amanzimtoti. For this reason it is especially popular with people working in Durban and Prospection Industrial areas as it is and easy drive to and from work. The suburb also offers some of the best schools in Amanzimtoti. Most of the homes on the sea side of Athlone Park also have sea views adding to the suburb's allure.
Prices: The suburb has two distinct price brackets, sea side of the freeway average property can sell anything between R1.5 to R7 million and inland from the freeway properties fetch from around R1100 000 to R1450 000. Sectional title selling price is about R1200 000 for flats and about R1400 000 to R2 000 000 for townhouses.
Predictions: Some developments that will especially appeal to young professionals are in the pipeline. The area will continue to grow as young professional families are revamping older homes.
THE CAPE
Sun Valley (False Bay)
Why? It is an up and coming area with young families as it is close to schools. Residents have easy access to the beautiful beaches in the area as well as a host of retail facilities.
Price: Accessibly priced in the with average prices between R1.85 million-R2 million depending on the property.
Predictions: A suburb to watch for the future as older homes are being remodelled and more people are looking for the laid-back "country" lifestyle that you can find here.
Camps Bay (Atlantic Seaboard)
Why? The best beach suburb in the country with a fabulous café-lined promenade and sandy white beach. Attracts buyers of all ages from all over the world, from Johannesburg to Germany. Ideal for holiday and residential rentals and for families given the access to top schools such as Camps Bay Prep, Junior and High Schools, Reddam House, Herzlia and St Cyprians.
Price: Priced from around R6 million to R60 million (but can go much higher). Property values have doubled in the last 5-10 years and the suburb is an excellent investment.
Predictions: There is no stopping this still evolving suburb where older homes are remodelled or demolished and rebuilt or sub-divided into two. It has been one of the best performing suburbs over the last 5-10 years.
City Centre (Cape Town CBD)
Why? Fast becoming a hub of financial and legal firms along with many other businesses including creatives, the Cape Town city centre offers a high density of apartments and a cosmopolitan lock-up-and-go lifestyle where you can walk to almost everywhere. It is close to the Waterfront, Convention Centre and beaches and attractions of the Atlantic Seaboard.
Price: Prices range from around R1.5 million-R3.5 million on average
Predictions: The city centre will continue to attract high demand and values will continue rising given the limited land space. It offers a mix of residential and rental investment opportunities.
Rondebosch (Southern Suburbs)
Why? Located in the heart of the Southern Suburbs and home to the highest concentration of top schools including Bishops, Rondebosch High, Rustenburg and more as well as close to University of Cape Town (UCT). Popular for student rentals and especially for family buyers. Aside from local amenities, you are also close to the Claremont CBD and Cavendish Square as well as the CBD, Waterfront and Atlantic Seaboard beaches. Homes are bigger and often have larger grounds with a swimming pool.
Price: Priced from around R4m to R14m (but can go higher for a top property).
Predictions: Family houses remain in demand despite a challenging year.
Somerset West
Why? Close to the Cape Town International Airport and home to two of the oldest wine estates, Lourensford and Vergelegen. The self-contained village offers everything you need including top schools, a regional mall and wine estates. It also offers a number of secure complexes and estates and is especially family-friendly as it offers a wholesome environment to raise children. It is popular with semigration buyers from Johannesburg and also attracts Germans and other Northern European buyers.
Price: There is something for everyone. Affordable properties start at around R2m and estate houses range from around R4m-R24m.
Predictions: Somerset West has withstood the test of time, it is a hidden jewel in the Winelands/Helderberg area and offers the ideal country lifestyle, yet close to Cape Town metro.
Author: Moneyweb - supplied content
