Location, location, location! The age-old mantra still rings true. Location remains one of the leading factors affecting a property’s investment potential and success.
According to a report released by Lightstone, Johannesburg boasts a number of South Africa’s most expensive suburbs based on average property value; Sandhurst, Dunkeld and Westcliff among the priciest and most sought-after areas in the City of Gold. All three are located in the city’s commercial and financial hub, Sandton.
But why is the North a good Investment Prospect?
Sandton owes its title as the “Richest Square Mile in Africa” to a well-established and thriving residential and commercial sector. There is a high demand for residential property, particularly sectional title apartments, in the northern suburbs of Johannesburg. The long-term yield potential of quality property in the North is undisputed! Here’s why;
Commercial and retail development in the Sandton CBD and surrounds has flourished, driving the demand for well-run residential schemes in neighbouring suburbs sky-high. Property value is increasing steadily with the rise in large-scale and wide-spread development, and in the process offering investors positive buy-to-let options and sound rental returns.
Corporate professionals working in and around the CBD are unwilling to sacrifice the lifestyle and convenience of Northern-living. Not only is Sandton teeming with popular restaurants and established shops, luxury gyms, schools and medical facilities, but it is located within close proximity and easy access to public transport nodes, highways and the Gautrain station. All major drawcards for SA’s affluent!
It also hosts many multinational corporations and businesses, like the JSE, catering to corporate individuals and executives from all over the world, which bodes well for buy-to-let investors targeting the corporate market.
The demand for quality property in the CBD far outstrips supply, but limited space for new developments has forced developers into the bordering suburbs, and in turn investors and tenants too. This isn’t the only reason for the development-boom in neighbouring districts! Working professionals want the best of both worlds – the lifestyle and convenience without the traffic congestion and overcrowding. With this in mind, many tenants prefer areas like Rivonia, Illovo, Athol, Houghton and Parkmore, which are as highly sought-after and as expensive as the CBD! Location will continue to be a key driving factor in the success of Northern property investment.
Yield potential for quality residential property in Sandton remains positive, whether you’re looking to buy in the CBD or adjacent areas. Johannesburg North is a positive choice for buy-to-let property purchases.