You'll never guess which SA city has become new favourite with first-time homeowners
Data from Seeff shows that, between January and August, property sales in Bloemfontein surged by 19%, while rentals climbed 8% year-on-year.
Image: Seeff | Supplied
Homeowners are skipping the hustle and bustle of life in other cities and taking up abode in an unlikely space, thanks to its charm.
Seef data shows that between January and August, property sales in Bloemfontein surged by 19%, while rentals climbed 8% year-on-year, with many opting for it's calmer streets and stress-free lifestyle.
Mortgage originator ooba reported a 9.5% rise in mortgage loan applications, with first-time buyers making up 48% of the market.
“Bloemfontein is the most affordable of the major metropolitan cities to live and buy property in,” said Seeff.
Most residential transactions fall in the R500,000 to R1 million range.
Bianca Jonker, licensee for Seeff Bloemfontein, added that the city also boasts one of the highest ratios of first-time buyers, driven by overall affordability.
But affordability doesn’t mean bargain-basement prices across the board, with one home is going under the hammer for R7.8 million.
According to FNB warns that property prices may be reaching their peak. Listed by Seeff, the property features a modern open-concept layout, five bedrooms, a fully equipped gym, a flatlet, a heated pool, a private putting green, and sustainable features such as backup power and water storage.
Yet, FNB says the upward momentum in prices is slowing.
Its House Price Index decelerated slightly to 4.9% year-on-year in October, down from a revised 5.1% in September.
Month-on-month, prices increased by just 0.1%, down from 0.4% in September and 0.5% in August.
By metropolitan area, Cape Town and Tshwane are seeing strong price growth, underpinned by favorable demand-supply dynamics, said FNB.
Meanwhile, Mangaung and Buffalo City are under pressure, with Buffalo City likely feeling the effects of a weak local manufacturing sector, FNB added.
Despite this, Jonker said Bloemfontein offers excellent affordability and a high quality of life, appealing to a broad demographic.
The city is attracting first-time buyers, families, retirees, students, legal, medical and other professionals, public sector employees, politicians, business executives, and entrepreneurs, Jonker said.
Seeff also notes Bloemfontein’s strong academic and institutional credentials.
Seeff is listing a home in Woodlands Hill Estate, which is on the market for R7.8 million.
Image: Seeff | Supplied
It is the judicial capital, home to the Supreme Court of Appeal, and boasts the University of the Free State and CUT, prestigious schools such as Grey College, major hospitals, government services, and a robust business sector.
Jonker added that increasing homeownership among women entrepreneurs is also boosting market vitality.
Looking ahead, Seeff says planned infrastructure upgrades and new residential and student housing developments will provide continued opportunities for investors, buyers, and sellers across diverse property types.
FNB noted that, while supply of flats and townhouses is trending upward, it remains off a low base following years of decline.
Pipeline supply is weak: plans approved by municipalities for housing units this year are down 5.7%, with flats and townhouses down 18.2%.
“This implies that the recovery in the current supply of flats and townhouses is not likely to endure,” said FNB.
Lower interest rates could change the game.
Should interest rates continue to come down, home loans will become more affordable, which will stimulate demand.
“Lower inflation and interest rates will also enhance bank willingness to lend, reinforcing market confidence,” said FNB.
Yesterday, the South African Reserve Bank announced a 0.25 percentage point cut in interest rates.
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