Germiston Property Market Is Worth Considering

GERMISTON, South Africa - March 26, 2015 - PRLog -- Luxury home buyers with an eye on value are forsaking traditional hunting grounds for Lambton and Klippoortje in Germiston, where similar properties cost up to three times less than in areas such as Bedfordview.

That’s the word from Simon Smith, principal of Harcourts Full Circle in Germiston, who says the city’s exclusive suburbs offer “tremendous value compared with those down the road”.

One of South Africa’s largest cities, Germiston is the seat of the Ekurhuleni Metropolitan Municipality which serves most of the East Rand and part of the Greater Johannesburg Metropolitan Area. It’s a bustling metropolis, he says, with 70 percent of the Western world’s gold supply passing through its gold refinery. It’s also home to a host of subsidiary industries and thriving industrial, retail and commercial components.

Klippoortje and Lambton, which has the added advantage of being on the doorstep of Germiston’s upmarket retail and business hub in Webber Road, are proving particularly popular with young family buyers and “yuppies” who want spacious grounds, generous accommodation and living areas as well as proximity to Germiston’s finest schools, says Smith. Homes in these suburbs range in price from R1 million to around R5 million, whereas the same properties in nearby Bedfordview are significantly more expensive, he says.

According to Smith, Germiston, which has grown up around the area’s gold mining industry, is more than holding its own in the current property market. Buyer activity is most prevalent in areas such as Elsburg and Estera, which he describes as a “quick moving, value-based market”. It’s to these suburbs that people are relocating from traditional townships such as Vosloorus and Katlehong, intent on upgrading their homes and being closer to their work places and transport routes. The most sought-after price range is between R500 000 and R700 000, which he says will typically buy an older, three bedroom house.

Smith also reports good buying interest in middle market suburbs such as Hazelpark, Hazeldene, Parkhill Gardens, Albemarle and Dinwiddie, where freestanding family homes cost anywhere from R950 000.0 to R2 million. A number of these buyers are Eskom employees and civil servants with easy access to home finance through their employers, he notes.

Underpinning the viability of Germiston’s residential property market is the re-emergence of developers, he continues. “We’ve had quite a few calls from developers in recent times, most of whom are looking at the lower and middle end of the market. In all likelihood, this will translate to the construction of two and three-storey blocks comprising units of around 60m² in size, such as the development being marketed by Harcourts Full Circle Gold Lake Estates which is currently under construction and selling well.”

To buy successfully in Germiston’s market, Smith says it’s critical to have an unblemished credit record. “The banks are still very risk-shy, declining up to 50 percent of all loan applications.  The chances of getting a loan are pretty remote for applicants with adverse comments on their credit records.”

Further to this, he says it’s common practice at the moment for the banks to grant bonds for less than the amount requested. “Buyers must ensure that they have access to funds that they can use to pay not only costs but also any shortfalls should the banks grant them less than the amounts for which they applied,” he advises.

Also, prospective buyers need to work out what they can afford based on their disposable income. “The focus needs to be not on what you earn but what you can afford to pay each month,” says Smith.

For sellers, he pulls no punches. “ In the current market conditions there is no reason why you can’t sell your within 30 days, a seller needs to select the correct agency to sell their home. The seller should select an agent based on the agent’s ability to deliver on a written marketing plan and the agents willingness to provide written service guarantees around issues such as regular face to face mandate review meetings and buyer feedback.

Should you need any advice or would like a complimentary market related valuation on your property contact Simon Smith on 084 507 7703 or simon.smith@harcourts.co.za