Housing in Southern Africa March 2016

Soweto home sells for record price The historic home of the late Doctor Johnny Mosendane, one of Soweto’s best-known public figures, has been sold by for R2,5million, a new record price for the township. Housing

T rish Luthuli, New Business Executive at PamGolding Prop- erties in Gauteng, says that the distinctive five-bedroomed property situated in Rockville, Moroka, was designed by renowned architects Michael Sutton and David Walker in 1979. The all-brick property is in many ways a typical Michael Sutton design with its unusual barrel vaulted ceil- ings and sky roofs. It has five-bed- rooms with three en-suite bathrooms plus a study, dining room and foyer. It has easy access to Chris Hani Road and the Bus Rapid Transit system, tremendously excited about the sale of late Dr Mosendane’s home, which is a well-known landmark within the Rockville community.” She adds, “This is a record for a sale to an individual and further serves to affirm that, despite slow national economic indicators, the Soweto residential property market, across all segments, remains one of the more buoyant in Gauteng. There are a number of reasons for this, in- cluding the fact that property rates in Soweto are substantially cheaper than in Johannesburg’s residential suburbs, and homes in the area offer affordability as well as excellent value for money.” Luthuli notes there is a and shopping and en- tertainment are offered at the nearby Jabulani and Maponya malls Luthuli says, “We are

in Johannesburg’s northern suburbs. “Homes in the area tends to represent a solid investment, a fact that many people are only now beginning to become aware of,” affirms Luthuli. The average property price in Soweto is R620 000 and there is considerable demand for homes anywhere between R350 000 and R750 000. Luthuli says that the 2015 National

growing urban population and black middle class within the Gauteng centres and that 40% of the greater- Johannesburg’s population resides in Soweto. This gives an indication of its enormous size. “This all translates into an ongoing demand for afford- able homes to buy and rent, and we do not believe that this trend is likely to abate anytime soon.” “We also note that many middle

Budget announce- ment, that no trans- fer duties are pay- able on property transactions below R750 000, as op- posed to the previ- ous R600 000 thresh-

The average property price in Soweto is R620 000 and there is considerable demand for homes anywhere between R350 000 and R750 000.

old, proved a considerable stimulant to the lower andmiddle-endmarkets last year. “Certainly recent rate hikes and diminishing household incomes are likely to impact the Soweto property market, but the demand for homes has such momentum that the future of the residential property market in the township remains bright.” Luthuli pointed out that one fac- tor that is inhibiting the growth of the residential property market in Soweto, is that many owners are not aware of the value of their properties as wealth-creating assets. ■

class individuals have been return- ing to Soweto from Johannesburg’s residential suburbs over the last number of years because they miss the colour and vibrancy of the sprawl- ing metropolis. Others would never dreamof ever leaving. The Soweto of today is hip, hot and happening and many people prefer it to some of the more staid, often quieter residential suburbs.” According to John Loos of FNB, the house price growth of properties in Soweto was 11,6% in the first quarter of 2015, which compares favourably with the single digit figures achieved

March 2016