As property sales figures continue to rise in Benoni, longstanding Just Property franchisee Andre Badenhorst shares some insights.
Andre has been part of the property landscape in Benoni for more than 20 years. Starting out when the Just Property brand first entered the market as Just Letting, Just Residential, and Just Commercial, he is now the principal Just Property franchisee for the Benoni, Boksburg, Brakpan, and Springs municipal areas.
“Property sales in Benoni have recovered since the dip in 2020,” he affirms, “and prices are on the up. In fact, the average sale price achieved in Benoni has surpassed Midrand, for example. According to the TPN Report for Boksburg and Benoni, the average purchase price of full-title property has seen a steady increase since 2016 (rising consistently from +/-R850k in 2016 to R1.4m in 2022).”
What is the average cost of a home now in Benoni?
“It’s best to break that down by the number of bedrooms so that you get a truer reflection,” says Badenhorst, pointing to the figures quoted on Property24 in early October 2022. “It ranges from R542 500 for a one-bedroom apartment, to R3 360 000 for five or more bedrooms. Currently, the average price of properties in Benoni is R 1 350 000 and there are 4 621 Benoni properties for sale on Property24 – the highest monthly total this year. So yes, the market has definitely picked up.”
Badenhorst adds that while sectional title properties saw a dip in the average purchase price in 2018 and 2019, they have recovered well in the last two years to a high of R762 500.
Who is buying?
“I find the age of owners fascinating,” Badenhorst smiles. “According to Lightstone, 38% of recent buyers and 44% of recent sellers were between 18 and 35 years of age. Isn’t that exciting? People used to say that millennials didn’t believe in property ownership; well here we’ve got them – and maybe even a few Gen Z individuals – driving this upturn. Young people and young families are investing here – that’s great for the future of our town.”
Badenhorst continues: “I’ve always believed that property offers an exceptional way to secure and grow wealth. It’s really great to see that youngsters have realised this.”
He says that one of his deepest regrets is that he followed the advice of others and invested overseas: “If I had bought properties in the up-and-coming areas in South Africa 10 years ago, my return on investment would have been much more. I wanted to but didn’t because I listened to the wrong people.”
The rental market
The average rental for a two-bedroom sectional title property is R7 138 while for a three-bedroom freehold property it is R10 467. “Freehold properties generally perform better than sectional title properties in terms of rental increases, with some areas (Northmead, Rynfield & Norton Home Estate) achieving rent increases of over 10%,” says Badenhorst, adding that the exception is Benoni South, where rent increases of sectional title properties are up more than 10%.
“The average gross yield on sectional title and freehold rental properties in Brakpan and Benoni exceeds the national average, and rental payment trends are generally positive, matching (in a few suburbs) and exceeding (in the majority of areas) the national averages,” Badenhorst reports.
TPN’s comprehensive rental analysis shows that combined, 78.85% of tenants in Brakpan and Benoni are in good standing with their rent. “This shows that careful tenant vetting and management is needed,” says Badenhorst, adding that one of the factors landlords should consider when choosing their managing agents is the strictness of their vetting criteria.
On 21 years in Benoni’s real estate industry
One of Badenhorst’s proudest moments was starting his property business 21 years ago. “It was a business model that hadn’t been tested with a brand that was new to the market… It was a risk but I saw the potential and made a success of the idea”.
“I’ve just signed for another 10 years. It’s not just the exceptional backing that I and my clients get with Just Property, it’s the fact that my values align with theirs. Also, there’s a great relationship between the head office and the franchisees. They gave me help when I knew nothing. And they are still there when I need them.”
With his new franchise agreement, Badenhorst has renamed his franchise and the company will be proudly trading as Just Property Impact. Looking ahead to the next 10 years, he anticipates that the property industry will grow from strength to strength in Johannesburg East.
His advice to aspiring real estate professionals is to find a brand that has a set of values they understand and can live by, to have a positive and business-minded attitude, and “don’t let the negative attitudes of others influence your actions. Keep looking at the potential you can achieve.”
For more information on Just Property, please visit www.just.property or call (087) 583 3333.
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