The demand for property in Johannesburg’s northern suburb of Paulshof, which lies between Lone Hill and Sunninghill, has been strong and constant ever since he established the Rawson Property Group franchise in this area some three years ago. This was said recently by David Wright, the Rawson franchisee for Paulshof. The demand, he said, is driven mainly by younger people, 60% of his buyers being below 35 years of age. To many people’s surprise, he added, the majority of Paulshof buyers qualify for bonds easily and his success rate on applications is between 85% and 95% in any month.
There are only 4460 residential units in Paulshof, 29% of which are freehold and estates and 71% of which are sectional title. Between early 2008 and the end of 2012, a period generally regarded as recessionary for South African property, the full title properties appreciated by 39,9% in value. This rate of appreciation, Wright believes, will continue and could, in fact, increase in the foreseeable future because as space for new development is now severely limited, existing stock is bound to become increasingly valuable.
The strongest demand, said Wright, is in the R800,000 to R1,5 million bracket but the Rawson Property Group can offer buyers one bedroom sectional title units here from R600,000 and, at the other end of the price scale, three or four bedroom homes for anything up to R3 million.
“What all Paulshof homes currently have in common,” said Wright, “is that they genuinely offer exceptionally good value for money. The sort of home that we can sell a buyer for R2,5 million will cost at least double that amount in Bryanston — less than 1 km away. It is, however, fairly safe to predict that the gap between the two areas must close up over the coming years and certainly our rate of appreciation is as good as any in Johannesburg’s Northern Suburbs.”
Paulshof rental stock, said Wright, also continues to be much sought after, but rentals in Paulshof remain fairly reasonable and not excessive. Attractive one bedroom units in security complexes can be had for R5,500 per month and a freestanding three bedroom home can be rented for R15,000 or more.