It doesn’t matter what you’re buying, buyers all want the same thing: value for your money. It’s never more true though when it comes to the purchase of a property, as a real estate purchase is usually one of the largest purchases of your life.
For the past few years now developments have offered exceptional value. Gone are the days when developers were making massive profits at the expense of the purchaser. When world property markets were impacted by the global economic crisis in 2008 / 2009 many developments came to a halt.
Sellers in the resale residential market had to listen to market forces and reduce their prices to attract buyers. This meant that development properties appeared expensive at the time, with increasing building costs and high infrastructure costs making it hard for developers to reduce their pricing.
But that’s all changed. In the Helderberg area some developers decided to listen to market forces and provide a product the market demands, at a reasonable price. This trend continues.
Examples of this are Kelderhof Country Village, Silver Fox, and Blue Crane Estates – all marketed by Harcourts Platinum. These developers, in conjunction with Harcourts, responded to market research. Turnkey properties were offered to the market – completed homes where purchasers have a choice of finishes, but without the stress of building themselves.
These properties compete with the resale market – in many cases offering better value than resale residential homes. Buyers are attracted to the thought of moving into brand-new homes in a secure estate with their choice of finish. Sales have proven this, with Somerset Country Estate by Kingshill selling out, Silver Fox and Blue Crane Estates nearing 60% sold, and Kelderhof Country Village nearing 170 sales since Harcourts Platinum took over marketing.
This trend is also true for the mid to upper-market. Bulties Hamlet Estate, with prices averaging R 4 300 000, also sold with relative ease. And luxury plots in the 77 On Dummer Estate are also now sold out.
When purchasing from a developer the price also includes VAT, which means there are no additional transfer duties to pay. Banks finance the total selling price, which is an advantage a purchaser has over a resale property, where it’s not possible to finance the transfer duty.
As a purchaser it’s great to know that sellers are listening to the market and pricing accordingly. So it’s important to shop around and weigh up the pro’s and con’s before you put pen to paper. When shopping, be sure to include developments on your list – especially if you are looking to live in a secure estate.
Both developments and residential resale properties can offer the discerning buyer great value. Do your homework and purchase wisely. As stock levels reduce we should continue to see a steady and healthy increase in property values.
Principal of Harcourts Platinum, and Director of Harcourts South Africa
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