Gauteng Waterfall Triumphs above Negative Growth

Gauteng Waterfall Triumphs above Negative Growth

Category Property News

Commercial growth in Waterfall, Gauteng has directly influenced the residential market as a growing number of middle-income professionals and young first-time buyers are moving into the area for employment purposes. For the last few-years, this has resulted in a vibrant housing market as demand outstripped supply, however, 2017 is already seeing changes in the dynamics between buyers and sellers that is set to even the “playing-field”. 

The middle income market, between the ages of 36 - 49 is currently the most influential demographic driving property sales in Waterfall, and subsequently property values. During 2015-2016, sales of freestanding homes increased by 35.4 percent, whilst values increased by 7.7 percent.

Since this demographic primarily consists of small families, the most popular sized homes are three to four bedrooms. Lew Geffen Sotheby’s International Realty has exclusive Waterfall residential properties on the market within this size range. A contemporary greenbelt home is currently on the market in the Waterfall Village Estate listed at R6,950,000. This stunning home boasts four spacious bedrooms, en-suite bathrooms, guest cloakroom and several lavish living spaces. This home is designed for those who appreciates modern living and impressive finishes.

Waterfall’s Buoyant Market

Last year, the local property market experienced a significant downturn as a result of a falling Rand, hiked interest rates and an uncertain political landscape that left investors uneasy to inject capital in the market. However, Waterfall counteracted this by performing significantly well owing to heightened market activity which witnessed many record-breaking sales. The main reason for this, is the area’s ideal geographical positioning, seated north of Johannesburg in the suburb of Midrand. This region is showing significant property growth due to a soaring commercial sector, ongoing ubanisation, a close proximity to good schools and main arterial routes, and a vibrant residential market that appeals to wide income brackets and preferences.  

Price Tightening 

Waterfall is a major economic driver in Gauteng’s provincial economy, and residential properties have shown notable house price growth as the area experiences a steady influx of people seeking employment opportunities, and thus steady demand for housing. However, this upward price growth trajectory is currently undergoing price tightening as the market becomes more balanced between buyers as sellers. Previously, buyers outstripped suppliers, resulting in sellers dictating property prices, but this year, it is forecast that the ratio between buyers and sellers will be much more equal, making the market more favourable to buyers than previous years. 

Urbanisation and city rejuvenation 

The rapid movement of professionals into Waterfall has resulted in the entire suburb of Midrand doubling in property stock to meet buyer demand, a demand that has led to the metro evolving into one of the most densely populated areas in Gauteng. The biggest benefit of density is that it leads to inner-city regeneration and the improvement of buildings and transport technology, which is perfectly encapsulated in the Waterfall City precinct. 
 
Buy-to-let investments 

Investment Buyers Increasing

When areas transform as fast as Waterfall, investors are sure to invest large amounts of capital in its property market. This trend is currently taking place in Waterfall, whereby, investors are choosing to venture into buy-to-let properties as a response to a younger demographic between the ages of 18-35, who prefer renting apartments and cluster homes, as opposed to buying. Such demand is delivering good rental yields in the City of Johannesburg, with gross rental returns ranging from 6.5 percent to 9.3 percent.  

As Waterfall continues to attract an urban populace, its residential market will continue to grow and thrive. For investors, the climate is ideal for buy-to-let investments, whilst buyers are encouraged to take advantage of a housing market slanting in their favour.

Author: Lew Geffen Sotheby's International Realty