Amid tougher market conditions and widespread concern in the property market, the affordable housing sector in Kempton Park is bucking the trend.

The National Credit Act and rising interest rates have compressed more buyers into the lower brackets, says Allan Bateman, owner of the local Chas Everitt International office that specialises in the affordable housing sector.

“The result is more buyers as well as sellers in this segment. Many owners who are finding bond payments unaffordable are selling, while buyers who would previously have bought in the R1-million price range now find that they qualify for a bond of perhaps only R850 000 and have to lower their sights.

“So, in contrast to what the pundits are saying, we have been exceptionally busy in the first half of this year. In January we achieved our best sales figures ever since opening the office almost four years ago, while our April sales volume doubled compared to last year,” he says.

Adverse conditions for property speculators contributed to the office’s sparkling sales figures. Bateman says that buyers looking around now are intent on buying, which contributes to quicker sales.

“With speculators out of the equation, buyers have a wider choice of properties and they are looking for real value. Sellers are aware of this and are adapting prices to draw buyers. In a sense, this is the fundamental property market in action – people are buying homes to live in and there will always be a demand for those, no matter what market conditions prevail.”

Prices of compact homes in suburbs such as the Norkem Park extensions and Birchacres start at about R400 000 and are scooped up quickly. Average prices, however, range from about R550 000 to R750 000 and, according to Bateman, most properties in this range sell within three months of listing.