Buyers adopt new search dynamics

Buyers adopt new search dynamics
2008/04/21

Massive growth in South Africa's real estate sector since 2003, both price-wise and geographically, has resulted in thousands of property shoppers adopting new search dynamics.
Some have done so by choice, says Mike Bester, CEO of Realty 1 International Property Group, while others, on the back of reduced affordability, have had little option.
Both categories, however, stand to reap enormous short, medium and long-term benefits if they've bought in the new "hotspot" areas that are coming into their own around the country, he says.
Among the most obvious of the benefits of buying in such areas is paying less for more.
"Traditionally sought-after areas invariably come with hefty price tags," he says.
"This has spurred home buyers into looking elsewhere, for example on the outskirts of town or in areas they would have sidelined in the past. People are changing their mindsets as they search for better affordability or lifestyles that offer less traffic congestion, crime and grime."
Among the new hotspots on South Africa's real estate radar are farmlands that have now been developed into residential suburbs such as those on the East Rand, little known coastal hamlets and holiday destinations in the Western Cape and the KwaZulu-Natal south coast, and parts of Johannesburg's inner city, where properties are being steadily upgraded by house-proud residents.
Pricing aside, the development and growing popularity of these areas has in many instances been concurrent with the construction or improvement of local roads. "This has in effect brought them closer to town, thereby making commuting far more viable," he continues.
Not only are many of these hotspots becoming residential destinations of choice but they are also being sought-out by entrepreneurs. He bears this assertion out by noting the rise in number of small businesses throughout the country.
Hotspots can be identified by a number of factors, says Bester. They are characterised by a good balance between competitive pricing, steady upward value growth and sales turnover.
"Ideally, one is looking for places that could have lagged behind the national growth average but which is now experiencing better-than-average appreciation."
This information is readily available from professional area specialist, and can be substantiated from driving around the area, counting sold signs and measuring the rate and type of property upgrades.
Also important for a "happening" hotspot is for it to have good access to main roads and freeways as well as amenities, medical and shopping centres and preferably public transport routes, he notes further.
"Buying into a new hotspot could be the answer for purchasers with limited budgets, especially if the property allows for expansion at a later stage," concludes Bester.
"It could also be the solution for existing homeowners struggling with affordability problems. By selling their current properties and moving to a more affordable home or area, they would hopefully be able to use the equity to ease their debt while simultaneously financing a new home and then watching their capital investment grow again."
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Buyers adopt new search dynamics