The township residential property market is showing more vibrancy than that of formerly white suburbs, Business Report wrote on Wednesday.
It quoted First National Bank Home Loans CEO Ed Grondel as saying the township market was performing better than the national metropolitan market in more than one respect.
It took less time to sell a township property and the odds were better that would it would fetch the asking price.
At least 63% of residential properties in the national metropolitan market were sold for less than the asking price in the third quarter of the year.
In the case of township properties, the figure was 12% in Gauteng, 9% in Cape Town and 17% in Durban.
In Gauteng, 74% of estate agents believed township market activity would increase in the next three months.
Grondel said 70% of agents believed there was a shortage of township stock, and purchases were ”buy-to-live and not to let”.
Price and affordability were important, but charges for rates, lights and water were more expensive in suburban areas than in townships.
Townships also provided a friendly environment, and buyers felt comfortable there. – Sapa