Pta East’s market conditions at a glance, according to Seeff
It is no secret that we are amidst a very tough economic cycle and to add insult to injury, interest rates are predicted to continue climbing. Higher interest rates inevitably impact on every sector in the country, including the property sector, but what exactly are the real effects on a flourishing area like Pretoria East for instance and how can buyers and sellers equip themselves under the current circumstances to make the best decisions possible? Gerhard van der Linde, Seeff’s Managing Director in Pretoria East, says despite the unfavourable market conditions all areas in the East of Pretoria remain sought-after by buyers and they have a constant volume of sales every year. “Although all price classes enjoy some degree of demand the most popular price range is for property priced below R2.5 million in areas like Garsfontein, Faerie Glen, Moreletta Park and Equestria. Homes in security complexes as well as townhouses and any higher density homes in especially the Menlyn area are also selling fast”. Van der Linde continues despite constant sales, financial institutions and their strict lending criteria still remain one of their biggest problems. “In our experience most banks have very conservative approaches to financing and sadly find more reasons not to lend money than the reverse. Around 40% of applications are rejected. On a positive note a new development like Menlyn Maine has a very favourable impact on the adjacent areas and is widely regarded as the origin of Pretoria’s very own Sandton. Van der Linde says that stock levels in the area have dropped with about 20% since last year due to the stagnant economy. “The most important reason for this is that many sellers have decided to rather hold on to what they have as opposed to upgrading. As a result sales volumes have also declined with around 5%”. Van der Linde continues that sellers need to be especially mindful that prices are under pressure and the time for unreasonable price expectations are over. “When a seller attaches unrealistic price tags to a property it stays on the market at an average of 145 days before it gets sold. When a property is realistically priced however, we can and often do sell it within 30 days. It does not mean that the property is priced too low, but rather that buyers recognised its value after comparing it to similar properties that were priced too high. Seeff Pretoria East sells 92% properties at their asking price, so it is vital that properties are correctly priced from the get-go”. Van der Linde concludes that prices in Pta East have grown with 9.67% compared to 2015 and that the highest price last year was achieved for a home in Waterkloof at R17 million while to date it is R7.2 million for a home in Mooikloof for 2016.”
