Consisting out of 96 suburbs, Randburg covers an area of 167.98 km² in the north-west of Johannesburg, bordering on Sandton, Roodepoort, and the City of Johannesburg. Well known for its plethora of malls, entertainment spots, great schools, and parks, Randburg is popular with both families as well as the younger generation looking to be close to work and play.
Although Randburg is a more affordable area than its rich cousin Sandton, suburbs such as Vandia Grove, Beverly Gardens, Robin Hills, Cedar Lakes, and the Bryanston extensions certainly hold their own when it comes to property values! Leadhome University has researched property sales data in Randburg over the last 10 years, which has delivered some very interesting results . . .
Strong recent growth as buyers shift to sectional scheme properties
Over the period of our research, the value of the average property in Randburg grew at a relatively demure 4.9% per year, trailing that of the rest of Joburg over the same period by 2.4% (Joburg: 7.3%). The average price of a freestanding home in Randburg is currently R1,467,000 (Joburg average: R1,881,000), whilst the average price of a sectional scheme property is R780,000 (Joburg average: R868,000). However, this research is relatively skewed given the incredible heights of the property boom during 2005-2007.
Focusing specifically on recent growth between 2013 and 2015, sectional scheme properties have performed exceptionally well, delivering average sales price growth of 9.8% as an increasing number of first-time buyers enter the sectional scheme market (2006-2015: 4.9% p.a.). However, the same cannot be said of freehold properties. Between 2013 and 2015, freehold properties delivered an average sales price growth of only 2.1% given the buyer shift to sectional scheme properties (2006-2015: 3.4% p.a.).
What does this mean for you?
Randburg is increasingly turning to sectional schemes as favoured property type. However, our statistics show that notwithstanding the slow price growth in freehold properties, there still remains a significant demand for freehold properties. If you are considering selling your property, Leadhome’s Area Property Experts will be delighted to do a free, no obligation valuation for you. Understanding the true value of your home is the first step in achieving the best possible result from your investment!
