SOUTNERN CAPE PROPERTY NEWS - There is a definite trend among urbanised people to want to own rather than rent property, according to Rawson Property Group Chairman Bill Rawson.
He says roughly 30% of the South African population cannot afford a home valued at R250 000. "Yet, it is now an established fact that the formerly disadvantaged members of our country increasingly recognise the value of home ownership and aspire to own their own homes.
Our franchisees working in previously disadvantaged areas around the country report a strong desire to own a home among the people with whom they deal - a desire that is shared by almost all newly urbanised people worldwide."
Rawson Properties George Principal Stephen Lubbe says their franchise's sales figures for 2014/2015 show that the majority of residential properties being sold in George were beneath the R1-million mark, which equated 49% of the entire market. Sales in the other price categories were as follows: R1-million to R1,5-million - 19%; R1,5-million to R2-million - 14%; R2-million to R3-million - 11%; and over R3-million - 7%.
"In 2015 we saw a growth in demand for houses across all price categories with average prices of homes in George showing positive growth. The growth in demand can be attributed largely to continued migration of people leaving urban areas due to rampant crime and poor municipal management and moving to the Western Cape.
"Security estates excluded, the top selling suburbs with the most residential transfers were Heather Park, Denneoord and Blanco in 2015, with Heather Park showing the best growth in average price from the previous year. Excluding Heather Park, average prices in these suburbs range from R750 000 to R850 000. Bond repayments in this category range from R7 000 to R8 000 per month, depending on interest rates and the loan terms.
"To qualify for a bond in this price category, you will typically need to be earning a gross salary of between R25 00 and R30 000 per month," says Lubbe.
This is far out of reach for the majority of salary earners.
"Many prospective tenants are people relocating from other provinces. Safety is their main concern with many being prepared to pay inflated rentals to secure properties in security estates.
"Demand for rentals is across the board with sufficient applicants to cover all categories of rental properties."
Bachelor apartments - R2 000 to R3000
One-bedroom apartments - R2 500 to R4 000
Two-bedroom apartments - R3 500 to R5 000
Two-bedroom town houses / houses - R4 500 to R6 500
Three-bedroom town houses - R5 500 to R8 500
Three-bedroom houses - R5 500 to R10 500
Four to five-bedroom houses - R10 500 to R18 000
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