The demand for property in Ormonde, south of Joburg, is so high that many homes have quickly attracted a number of qualifying buyers, seeing the asking price matched by multiple offers
In Ormonde, the right property in the right location at the right price can attract multiple qualifying buyers within a day of listing, which can sometimes result in the asking price being matched by several offers.
This is according to John de Melo, team leader for Team Khaya at Re/Max All Stars. He has worked in Ormonde for five years and has consistently enjoyed a mandated listing in the area due to the continued demand for properties in the suburb.
“Ormonde is a highly sought-after area, located close to major highway off-ramps and on-ramps, including the Xavier Street off-ramp on the M1,” De Melo says.
Ormonde is also positioned close to the N12 and fairly near the Xavier turnoff on the N12.
“It is close to the Joburg CBD via the M1, which is a quick six-minute drive, and is a five-minute drive from Mayfair,” he says.
As in nearby Mayfair, Ormonde has a significant and growing Muslim population.
De Melo says a big drawcard for property investment in Ormonde is the numerous mosques in the area and surrounds. This eclipses the putative pull Gold Reef City has on prospective investors.
“Ormonde has two exclusive freehold estates, Lakewood Estate and Sandalwood Estate, where prices range from R2.5 million to R15m. Both estates attract a high concentration of Muslim owners and investors,” says De Melo.
“Ormonde has a wide price range, from the R10m-plus price spectrum on the prestigious Lakewood Estate to the entry-level R500 000 properties in Gold Reef View. It caters for all budgets.”
Gold Reef City, for its part, is another significant contributor of demand for property in the area, with staff employed at the resort being a well-represented demography in sectional title unit sales, says De Melo.
Gold Reef City consists of the casino, a shopping centre and an entertainment park. Another landmark is Unisa Conference Centre.
In total, there are 390 freehold properties in estates, 1 055 normal freehold properties and 1 365 sectional title units, says De Melo, who points to an extremely diverse property portfolio, from one-bedroom apartments to palatial properties with 10 or more bedrooms.
He reports 34 freehold sales, averaging at R873 000 a sale, and 80 sectional title unit sales at an average selling price of R614 000 in the past 12 months.
He says one finds houses aged 50 or more years to newly-built properties, especially within the Lakewood and Sandalwood estates, with almost 50% of homeowners having lived in the area for 11 or more years, making it a stable area.
“Ormonde is an excellent investment area, especially with freehold properties and open land. The sectional title market is slightly saturated at present and growth in this market segment is trailing that of the freehold sector,” says De Melo.
He advises buyers to buy in the lower end of the freehold market and hold on to their properties for two to three years to realise great growth return of more than 10% a year.
Comparable neighbourhoods would be Mayfair, Chrisville and Robertsham, all of which are also to the south of Joburg.