Latest news with #PamGoldingProperty
The Citizen
20-05-2025
- Business
- The Citizen
Townhouse or standalone house? Here is what and where 30-year-olds are buying
First-time buyers opt for freehold homes as their primary residence, while sectional title homes are used as an investment or buy-to-let properties. First-time buyers, especially young adults, often opt for sectional title properties as their first homes because they are convenient. Sectional title properties are a form of ownership where a building or complex is divided into individual sections, like apartments, townhouses and common areas. However, data from Ooba Home Loans shows that interest from first-time buyers in buying freehold homes has not declined significantly. Freehold ownership means you own both the land and the building on it, giving you full control over the property. This includes the freedom to renovate, extend or modify the property, often with minimal restrictions beyond local zoning regulations. Andrew Golding, chief executive of the Pam Golding Property group, says the percentage of freehold homes purchased by first-time homebuyers has remained relatively stable, declining from 70% in 2014 to 66% in 2024. ALSO READ: Warning for South Africans buying homes Which home do you prefer? Freehold homes and sectional title properties have different benefits, and it depends on what the buyer is looking for. Golding adds that first-time buyers opt for freehold homes as their primary residence, while sectional title homes are used as an investment or buy-to-let properties. 'In 2014, there was a slight preference for freehold homes, 52% of first-time buyers' investment purchases, but by 2024, sectional title purchases dominated at 60% of all first-time buyers' investment purchases.' Which type of home is an investment? He adds that many first-time buyers are embracing the national trend towards acquiring investment properties or buy-to-let properties. 'Increasing demand from first-time buyers has resulted in a real (inflation-adjusted) increase in the average price paid by those purchasing their first property during the first four months of the year. 'During the first four months of 2025, the national purchase price for homes in South Africa averaged R1.66 million, reflecting an increase of 2.7% compared to the same period last year. 'Notably, during the same four-month period this year, the average price paid by first-time buyers was R1.245 million, which shows an increase of +4.7% compared to year-earlier levels.' Difference in home prices Golding says that in 2014, a first-time buyer purchasing an investment property paid almost the same for that property, regardless of whether it was a freehold home (R1.045 million) or a sectional title (R1.026 million). First-time buyers who opted for freehold homes purchased the more expensive ones, with the average price paid increasing by 111% over the past decade to an average of R2.21 million in 2024. This compares to an increase of just 42.1% over the same period, with an average purchase price of R1.46 million in 2024 for first-time buyers' sectional title purchases bought as investment or buy-to-let properties. ALSO READ: Thinking of buying your first home, here are five key issues to consider Decline in buying with a spouse Data shows a decline, from 34% in 2014 to 27% in 2024, in the percentage of people buying houses with a spouse. However, purchasing with another person has risen from 14% to 18% – perhaps reflecting those buying a home with a partner, family member or friend instead of a spouse. Golding adds that 64% of their first-time buyers do not have dependents. 'However, there has been a clear increase in those without dependents in the wake of the pandemic, even as the average age of first-time buyers has risen.' Ages of first-time buyers He adds that there has been a shift in first-time buyers; those over the age of 43 are the fastest-growing age cohort of first-time buyers, compared to those between 24 and 33 years old. Nonetheless, the largest age group is between 33 and 43, with a more recent average age of 35. 'Regionally, Ooba Home Loans' statistics revealed that during the year-to-date, demand from first-time buyers was strongest in Mpumalanga (57.3%), followed closely by the Free State (55.9%). 'Gauteng South & East (51.4%) and KwaZulu-Natal (51.2%) were the only other regions in which first-time buyers accounted for more than half of all their applications for home loan finance.' ALSO READ: More South Africans buying houses for less than R700k. Here's why Pros of buying sectional title property According to Betterbond, there are pros and cons of buying sectional title property. Pros include: Easier to finance: Before construction commences, developments must be approved by the major banks, so when you then apply for a bond, the process is often quicker and easier. Body corporate : As the owner of a sectional title unit, you automatically become a member of the body corporate, the legal entity that manages common areas of the property. You pay a monthly levy for a range of services, including conduct rules for residents, building insurance, perimeter security, cleaning, landscaping, and maintenance of common areas, such as gardens. As the owner of a sectional title unit, you automatically become a member of the body corporate, the legal entity that manages common areas of the property. You pay a monthly levy for a range of services, including conduct rules for residents, building insurance, perimeter security, cleaning, landscaping, and maintenance of common areas, such as gardens. Security: Sectional title property generally offers good entrance and perimeter security. In a freestanding house, you are responsible for installing and maintaining these systems. However, in a sectional title property, the body corporate takes care of it, and the cost is funded through your monthly levy. Running costs: You pay for municipal rates and taxes, home contents insurance, upkeep of your garden if your unit has such an area, and your own monthly water and electricity consumption. Everything else is pretty much taken care of. Rentals and resales: Sectional title properties are popular with renters, making them a good option for investors. This also links to resale value, which often improves over time. Connectivity: Sectional title properties are usually fibre-enabled, so your only expense would be connecting to the existing infrastructure and paying for monthly usage. Working from home is becoming increasingly prevalent, which is a significant advantage. Cons of buying sectional title property Communal living : Sectional title property means living close to others, and this could come with a few everyday irritations, like noise. : Sectional title property means living close to others, and this could come with a few everyday irritations, like noise. Special levies: From time to time, in a sectional title property, there might be a special levy, for example, if the exterior of the building needs painting. However, owners will always be informed of this well in advance, so you will be able to budget for it in good time, and ultimately, it will increase the value of your investment. Benefits of buying freehold Nedbank listed a few benefits of buying a freehold home. You will usually have more space and privacy on a freehold property, with your neighbour's house further away than in a townhouse or block of flats. You will have more freedom in matters such as exterior decorating or choosing your preferred pets. You can also determine the level of maintenance and security required for the property, and allocate a budget for these services according to your own priorities. You can deal directly with the municipality regarding any service issues, instead of relying on the body corporate. NOW READ: House prices are rising in SA — here's why
The Citizen
12-05-2025
- Business
- The Citizen
Increasing web searches for homes in Bryanston and Sandton
With the world at their fingertips, most buyers embarking on a search to find the home of their dreams, and within their budget, begin their journey by scouring the internet, viewing properties for sale. Says Dr Andrew Golding, chief executive of the Pam Golding Property group: 'A recent assessment of web searches on our website reveals some notable trends regarding locations attracting high interest. 'While Cape Town retains top spot for searches on the Pam Golding Properties website, Gauteng locations such as Bryanston and also Sandton overall account for an increasing number of web searches. 'In fact, for the six-month period August 2024 to January 2025, seven of the top 20 searches were for suburbs in Gauteng, with Bryanston and Sandton (as a whole) in second and third place behind Cape Town. Notably, Gauteng locations accounted for nearly a third of all the top 20 searches during this period.' Adds Dr Golding: 'This is compared with the first quarter of 2024, when Gauteng accounted for only five of the top 20 searches on our website, with Bryanston in fifth place and Sandton seventh.' Says Nelson Ferreira, regional head in Gauteng for Pam Golding Properties: 'Sandton's reputation as a premier business and luxury hub plays a significant role in the uptick in enquiries, particularly in the luxury market from R15m plus, where viewing interest has increased. This is not only among South African buyers and returning expats, but also international purchasers predominantly from African countries, and from Europe. There has also been a notable increase in offers submitted on properties priced around R11m to R15m. 'Due to its vibrant lifestyle, lucrative business opportunities and upscale living environment, this area has always appealed to international property buyers for various reasons. This includes those relocating permanently or with three-to-five-year contracts in the area, while other global investors are purchasing apartments to rent out and build a property portfolio in Southern Africa.' Meanwhile, says Ferreira, for savvy investors and local first-time buyers, the recently adjusted R1.21m threshold for transfer duty has significantly improved the time taken to sell properties pegged below this price point. A leafy green suburb within Sandton, Bryanston remains a sought-after address because of its central locality, top government and private schools, and close proximity to Sandton CBD just 8km away. It is also only some 17km to Midrand, and for commuters to Tshwane, offers easy access to the highway. Bryanston is dissected by Winnie Mandela Drive, one of Johannesburg's busiest arterial roads, which effectively separates east from west Bryanston. Says Ferreira: 'The suburb caters for every kind of buyer, from those entering the market to couples, families upscaling and high net worth purchasers seeking luxury living, as well as those relocating back to Johannesburg as a result of a return-to-office trend. 'Bryanston offers a wide range of residential properties, including full title homes priced between R3m and R40m, estates with residences in the price band between R3.5m and R30m, and sectional title townhouses ranging from R900 000 to R8m.' There are several distinct property segments in Bryanston – each in high demand, albeit currently with an oversupply. Development market Comments Ferreira: 'Reflecting the ongoing demand and desirability of the area, developers are actively acquiring freehold properties from 1 900sqm to 4 200sqm, resulting in a wide range of both estate-style clusters and sectional title developments being built. Developers are especially interested in stands that have been rezoned as they offer strong prospects for redevelopment, renovation and resale. Currently, the going rate for rezoned land – whether vacant or with an existing home – is approximately R1 000 per square metre. 'In addition, some individual purchasers are looking to acquire properties where there is potential to subdivide and sell a part of the land, as well as combining households, with a cottage or flatlet sought after for multi-generational living. As a result, many homeowners who are unable to realise the full value of their properties are opting to subdivide. A single stand can potentially be split into five stands, allowing for the construction of five modern cluster homes. Subdivision is driven either by existing homeowners unlocking value or developers aiming to build multiple homes or high-density apartments for resale.' Full title homes Typically set on large stands from approximately 1 900-4 300sqm, making them highly attractive to developers, full title homes are available in both Bryanston East and Bryanston West – with the East more developed with newer builds, while the West comprises mainly older or more existing, mature homes,' says Ferreira. 'In Bryanston West, entry-level pricing for full title homes starts at approximately R3m, which generally comprises a four-bedroom, 3.5-bathroom house. Homes in this area range up to R15m, offering substantial opportunity for renovation. In the East, full title prices begin at around R5m and extend up to R40m, with a similar range of stand sizes creating significant potential for investors, particularly developers. Sectional Title units 'The sectional title segment of the market is extremely attractive to first-time buyers because of its affordability, security features, and the opportunity to live in one of Sandton's most sought-after suburbs. What makes this sector particularly competitive is that sellers of existing units must compete with these brand-new, sectional title developments with studios starting at around R900 000, two-bedroom apartments ranging from R1.2m to R1.7m, and three-bedroom apartments or townhouses priced between R3.3m and R4.7m.' Ferreira says buyer preferences in Bryanston East vary – some are seeking freehold properties of 2 000sqm or more, with a minimum of four bedrooms and within gated communities, while others typically prioritising a spacious yet secure lock-up-and-go lifestyle are looking for secure cluster homes on approximately 1 000sqm of land, with 400-600sqm under roof. Cluster and Gated Estates 'Another standout segment is the cluster and gated estate market, where buyers can enter from around R3m, while premium properties can exceed R20m. These estates offer excellent security, lower levies – especially compared to various sectional title units, and larger stand sizes ranging from 400-1 200sqm. Homes in this market segment tend to sell quickly due to strong demand and the appeal of estate living.' With excellent amenities, including top-tier shopping centres, green parks and the exclusive, limited-membership Bryanston Country Club, Bryanston is home to some of Sandton's most prestigious schools including Bryneven Primary, Bryanston High School, Brescia House, The British International Collega, St Stithians College, Michael Mount School and Brynandale Primary as well as close proximity to Redhill. Issued by: Gaye de Villiers on behalf of Pam Golding Properties
Zawya
13-03-2025
- Business
- Zawya
South Africa: National budget boosts infrastructure investment in key property areas
The national budget reflects increased infrastructure investment in key property growth hubs, despite concerns over the disappointing Vat hike, says Dr Andrew Golding, chief executive officer of the Pam Golding Property group: It was positive to note that the critical need for infrastructural improvements has been highlighted in today's National Budget, as investment in sound infrastructure with a focus on energy, clean water supply and effective sanitation, well-maintained roads and other transport facilities, as well as affordable and effective broadband connectivity, promotes economic growth, and fosters employment opportunities. It also ultimately attracts new businesses and both residential and commercial property development and helps foster thriving economic hubs. This is evidenced by the semigration trend, which continues to see home buyers relocate to municipalities with good infrastructure and sound management. Investment in owning one's own home is recognised as a key aspiration for people across all sectors of the market, with benefits including capital appreciation and potential rental income. According to Pam Golding's Residential Property Index, national house inflation continues to gather momentum, rising to +5.75 in January 2025, which is higher than the post-pandemic peak of +5.6% in May 2021. While the National Treasury was faced with a challenging balancing act in delivering the National Budget, the increase in Vat, albeit 0.5% in the short term – with a further 0.5% the following year (2026/27) - will impact already cash-strapped consumers, particularly those who can ill afford it – this despite the increase in zero-rated foods to cater for the poor. With citizens about to be hit with hefty electricity hikes – which will attract increased Vat, this simply increases financial pressures on consumers who must also pay Vat on other municipal tariffs – all of which adds up to a sizeable share of their monthly income. From a property perspective, there are a number of Vat-inclusive services associated with the purchase of a home, for which buyers will need to allocate additional budget, which will impact particularly on first-time buyers seeking to gain a foothold on the first rung of the property ladder. The transfer duty threshold was last adjusted to R1m in 2020/21 which compares to the average purchase price paid by a first-time buyer of R1.24m. Obviously, it was difficult to adjust again with current pressure on the fiscus, but an adjustment is due particularly given the surge in inflation in the wake of the pandemic. Furthermore, purchasers of new-build units will also be affected, as Vat is incorporated in the purchase price of new developments when brought to market by developers. The fact that the fuel levy has not been increased is positive, however, South Africans across the board will be negatively impacted by the lack of inflationary adjustments for personal income tax bracket creep, and for medical tax credits. It is hoped that a clear focus on fiscal consolidation will bear fruit, with the stabilising of debt. As noted in the Budget speech, the key issue that needs to be addressed is the lack of economic growth. This requires macroeconomic stability – which this budget delivers even as it places pressure on households.
