Gautrain a future boost for Centurion

Gautrain a future boost for Centurion
12 May 2010

The Centurion property market is set to receive huge boost in terms of demand and price growth in a year’s time when the Gautrain station grinds to completion.

So says Charmaine Coetzee, office manager for Pam Golding Properties (PGP) in Centurion, who adds that people who can buy or hold on to their property in the vicinity of the station, will reap excellent rewards.

“The Centurion property market is expected to grow over the next few years as the Gautrain and the newly upgraded highways make this beautiful and safe area more accessible to people who work as far afield as Midrand and Johannesburg. In addition, the newly planned Convention Centre in the area is expected to positively influence property values,” says Nic van den Berg of RE/MAX Jowic.

“The property market has shown growth over the past seven months, and we expect a steady positive growth for the next three to five years,” Van den Berg says.

“While the market growth is still far off the levels we experienced three years ago, and are unlikely to see ever again, there are signs of stock shortages in certain market segments. This is due to the fact that there are currently no new developments in the sectional or full-title markets. Prices will start to escalate once the current supply levels diminish.”

Coetzee says prices in Centurion are definitely higher than last year, but adds that the growth is moderate and nowhere near the 2007 levels. “Properties in estates have certainly seen some steady growth as demand grew.”

Van den Berg says the current average price for an entry-level property in Centurion is around R450k. Mid-level property prices average R850k, while more expensive properties are priced at R2,5m and above. “There are properties in the upper-market segment that are currently overpriced and these sellers will have to wait until the banks have relaxed their credit criteria before demand for these properties will pick up. Currently, our cash buyers are looking for better priced homes,” he says.

“There is also still a good supply of land available as builders remain constrained by the availability of loans, and land prices have not increased over the last 24 months.”

Coetzee says anything up to R2,5m is moving briskly right now and agrees with Van den berg that the upper end of the market is still quite slow with very few sales. “It’s also hard to single out a specific group as the main component of the buyers’ pool, as it consists of anything ranging from families to young couples to retirees.

“It has to be said, though, that first-time buyers are still struggling to obtain home loans, but not to a significant degree.”

When asked about stock shortages, she said there is a big dearth of rental properties now on the market between R600k and R900k. “People are shedding their rental properties rather than continuing to let them.”

“We’re also experiencing a massive demand for stands with people more keen to build now. The interest in security estates is also showing good improvement although the sales aren’t quite there yet.

Coetzee says a property in Centurion will be on the market for a mere 30 days if it is priced right. “But if it’s not, be prepared to wait 60-90 days, if it sells at all.” – Eugene Brink