Unpacking the Residential Landscape in Germiston
Category Property News
Germiston, situated in Gauteng's East Rand, is a small city that is synonymous with mining and industrial activities. Although this backdrop remains, recent trends suggest that the city is also transforming to meet urban needs by catering to a sophisticated residential market.
Forming part of greater Johannesburg in the Ekurhuleni Metropolitan Municipality, Germiston's residential growth is largely owed to affordable property options that are providing much-needed relief for cash-strapped citizens.
Various suburbs within the city are attracting a high number of buy-to-let investors, home buyers and tenants, with the most activity taking place in Albemarle, Castleview, Dinwiddie and Lambton. The diverse range of interests attracted to Germiston is a good indication of a residential sector that is expanding.
In particular, the rental market is showing the most growth and it is outperforming the buyers' market. This is because rentals in Germiston are fuelled by young tenants, many of whom are renting for the first time. In fact, first-time tenants are considered the lifeblood of the rental market not just in Germiston, but in South Africa as a whole. They are one of the largest groups looking for rental homes, and subsequently, are stimulating buy-to-let investments among small-scale investors.
Affordable Options for Tenants
On average, tenants looking for property in Germiston can easily secure a two-bedroom home in a secure complex for around R5000 or a three-bedroom apartment for just under R8000. An example of a property on the market is a two-bedroom and two-bathroom townhouse in Castleview for R6400pm. The home features a big balcony, an open-plan kitchen and lounge, and the bedrooms are fitted with built-in cupboards.
The future growth of the rental market in the city looks promising as inflationary factors are favouring tenants. According to the StatsSA Consumer Price Index, residential rentals in South Africa has seen a slow-down in actual rental inflation from 5.68% in 2017 to 4.19% in 2018. This means that tenants are benefitting from reduced rental rates, which show no signs of sharp increases in the future. This has provided significant financial relief, especially in the current challenging economic landscape.
Buy-to-let Investors Benefit from High Demand
Although the property market is experiencing mediocre rental inflation, buy-to-let investors are still benefitting from a high demand for rental homes. In the case of Germiston, its popularity among first-time tenants means that rental homes are occupied for lengthy periods of time as this group is taking longer to buy their own homes due to the high costs of living.
To achieve buy-to-let success in Germiston, investors will need to get a good understanding of the most active price bracket among tenants, the most popular property types and the suburbs that are attracting the most tenant interest. Most tenants are gravitating toward the R7000pm - R12 000pm price range, which is typically a two-three bedroom apartment or duplex/complex.
Create a Thriving Life
Germiston has a long history and it is one of the most well-established cities in Gauteng. Attaining city status in 1950, it has since developed a strong network of roads and amenities, which make it a great place to live. Here, you can find top schools such as St Catherine's Convent, St Benedict's and Bishop Bavin; shopping malls such as Albemarle Shopping Centre, Bedford Village Shopping Centre and Golden Walk; and attractions such as Germiston Lake, the Germiston Golf Club and the 95ha Rondebult Bird Sanctuary.
The future of Germiston looks promising as many home buyers, investors and tenants are choosing it over other popular areas in Johannesburg such as Midrand, Sandton, Bryanston and Rosebank. Affordability is the key factor for the movement of people into the city and this is set to motivate for the expansion of new residential developments.
To find out more about the homes in Germiston that are available for buying or rental purposes, speak to our helpful agents at CSi Property Group today.
Author: CSi Property Group
