Rosy future for property market in Centurion
City of Tshwane executive mayor, Kgosientso Ramokgopa recently announced that the city plans to raise R750m on the capital market during the next financial year plus an additional R10bn over the next five years to fund infrastructure. One of the main beneficiaries of these funds will be the proposed Tshwane International Convention Centre as well as adjoining road improvements to the site and access to the electricity network.
Another project is the construction of the Rainbow Junction which will be situated 6km from the city centre and will serve as a mixed use development. The city envisions this project to mirror the success of Melrose Arch in Sandton, Johannesburg.
The Centurion residential property market stands to benefit from these developments - even though not all of them will occur in the area itself - and the infrastructure upgrades will likely boost local business which will draw people, many of whom will buy in the surrounding suburbs such as Centurion.
High demand for property in complexes
Residential property can be divided into two markets offering something for everyone; the upper market focuses on the various estates (Cornwall Hill, Centurion Golf Estate, Zwartkops Golf Estate, Irene Proper, Tenth Lane Estate, Irene Farm Village, Southdowns, Midstream and Heritage Hill) and the open areas that cater to the lower to upper income markets.
Properties in the estates tend to be freeholds and selling for between R1m and R3.5m, while prices in the other areas vary quite drastically from R400 000 to R1.5m.
Glenda Wolters from Leapfrog Property Group believes that complexes are still mostly in demand; however there is a new trend starting picking up where younger people are moving out of townhouses into free standing properties for the bigger stands.
The Gautrain could also come to play a much larger role in the area with Gautrain management agency CEO Jack van der Merwe indicating that the next phase of the Gautrain development could include a loop through Pretoria connecting suburbs around the central business district that are home to 400 000 people, two universities, 48 government departments, six hospitals and 30 schools. The agency is also contemplating a route extension between Pretoria and the OR Tambo Airport.
Businesses will benefit
Not only do businesses in Centurion stand to benefit from the improved infrastructure and increased connectivity in the area but also home owners; the upgrades could dramatically reduce congestion in the area which makes commuting a better prospect. The upgrades also stand to make the zone more popular for potential investors and property buyers - increasing the value of residential property.
While many of the proposed upgrades are only in the planning phase at the moment it is clear that Centurion already has much to offer in terms of property selection, services and ease of commuting. This picture only stands to improve as the upgrades take place.
