Just 15 minutes from the Pretoria CBD, the suburb of Faerie Glen's tree-lined streets and established gardens give it a laidback feel in contrast to the hustle and bustle of the vibrant city centre, making it desirable to property buyers and investors alike.
This popular Pretoria East suburb is ideally situated on the southern slopes of the Bronberg Mountain. Located between Lynwood and Atterbury Roads, Faerie Glen has become a sought-after area to live in, with much development occurring in the area over the past decade. Prior to the recent recession, many security estates were developed around Faerie Glen with demand for properties in these estates are growing daily.
Its popularity is due not only to its residential character but also its close proximity to major shopping centres such as Menlyn and Woodlands. In addition, it lies within easy access of both the N1 (to Johannesburg) and the N4 (to Witbank) highways.
Adrian Goslett, CEO of RE/MAX Southern Africa, says that while the demographic of existing homeowners in Faerie Glen is fairly evenly split between the various age groups, it is the younger generation of buyers (18 to 34 years old), who are currently driving the property sales activity in the area. He notes that around 40.18% of recent buyers fall into this age group. Slightly older consumers have also made their presence felt in the market with approximately 28.29% of recent buyers between the ages of 36 and 49 years old.
According to Goslett, the number of property sales in the area saw a steady decline from 2004 until 2009. However he notes that in 2010, the number of property transactions saw excellent recovery, with sales volumes seeing growth every year since.
Martin Potgieter, RE/MAX Jacaranda Broker/Owner in Faerie Glen says that property prices in the area saw phenomenal growth between 2004 and 2007. However, from 2007 to 2011 property prices remained fairly stable, seeing only marginal growth. In 2012 property prices saw an increase in line with the growing momentum of the market. Prices continued on an upward trend in 2013 and again this year with both the average freehold home price and sectional title unit price at record highs. According to Lightstone data, the average price of a freehold home is around R1.736m, while the average sectional title units cost approximately R1.072m.
According to Goslett, more than half of the properties sold in the area between April 2013 and March 2014 were priced between R800,000 and R1.5m, making this the most sought-after price bracket. Around 27.3% of the properties sold during this period were priced between R1.5m and R3m, while around 17.2% were priced from R400,000 to R800,000. Properties priced below R400,000 represented around 1.2% of the area's sales, while those price above R3m accounted for just 0.2% of the market.
"Currently, the demand for properties in Faerie Glen is extremely high" says Potgieter. "We find that correctly priced properties often sell within two to five days after listing and as a result of the high demand, prices naturally tend to increase."
According to Potgieter another trend is the increased number of sales of vacant stands. "During the recession, purchasers were weary about buying vacant stands as a result of uncertainty of the future and the perils associated with building. Many consumers have now realised that building is currently one of the few ways to obtain their ideal home," he concludes.
