Areas and Places

Property market in Parow Valley creates realistic property pricing

Hidden below the N1, just south of Voortrekker Road, lies Parow Valley – a suburb characterized by its long, straight streets, spacious properties, and vibrant, multi-cultural residents.

Bisected by De La Rey Street, the two halves of the neighbourhood are named Klipkop (on the east) and Parow Valley (on the west). Each of these areas offers a slightly different property profile, but they share a common atmosphere and community spirit.

“Parow Valley, as a whole, is an exceptionally central, convenient place to live,” says Alvin Suklall, the Rawson Property Group’s local franchisee here. “For people of working age, we’re only 8km from the airport and 20km from the CBD, and have a full range of public transport options – including bus, train and taxi – all within walking distance of most of the neighbourhood. We have a local shopping centre, a Pick ‘n Pay and a Builders’ Warehouse, Tygerberg and Melomed Hospitals for healthcare, Saffier Primary School, Northlink College, and Unisa, CPUT and UWC campuses. There’s really very little that you won’t find in Parow Valley.”

While property styles in the area vary from original fifties architecture to modern renovations, the average home is a single storey, three bedroom, one to two bathroom, family-style house with a garage, on around 496m2 of land. One and two bedroomed apartments are also available in several recently-built development blocks.

The Klipkop side of De La Rey Street offers slightly smaller homes at slightly higher prices – a result of its proximity to Tygerberg Hospital and general popularity. The Parow Valley side, on the other hand, has larger properties at lower prices, but its homes aren’t always as modern or feature-rich as it’s eastern neighbour.

“The whole suburb is very affordable compared to nearby areas,” says Suklall, “but prices can differ by as much as R200 000 depending on which side of De La Rey you’re looking at. In general, however, most houses will fall within the R900 000 to R1.3 million range, with the occasional fixer-upper for R750 000 or so. Apartments, on the other hand, will cost between R450 000 and R550 000 for an average two bedroom.”

Property demand in Parow Valley is high, particularly amongst the 35 to 50-year-old age group. Qualified buyers, however, are less common, and Suklall urges sellers to price their homes realistically.

“Buyers at the moment are extremely choosey, and are offering what they believe the property is worth, regardless of asking price,” says Suklall. “Part of this is because a lot of people just can’t qualify for a bigger bond, and part of it is because buyers are more informed and aware of what they do and don’t want these days.”

Popular buyer requests are fully-fitted kitchens, built-in cupboards, entertainment areas with built-in braais, well-tended gardens and spacious rooms.

Rentals in Parow Valley are also popular, and sellers may be tempted to let their property instead of selling. Suklall, however, cautions prospective landlords not to expect a hassle-free experience these days.

“The tenant pool is there, but we are seeing a lot of landlords struggling with unreliable or dishonest occupants at the moment,” he explains. “If you are going to let your property, make sure you do a full background check on prospective tenants, and use a good and reliable rental agency. If you’re hoping for a 100% secure income stream, however, a different investment might be preferable until economic conditions and unemployment levels improve.”

That doesn’t mean property in Parow Valley is a poor investment, however – Suklall sees an average capital appreciation of 8 to 10% per annum. “Prices are still rising, and smart property owners who do the right improvements without overcapitalising can see good returns over the average ownership period of five to seven years,” he says. “If you’re looking for good investment potential, the best idea is to visit our franchise and we can walk you through the opportunities available in our area and find something that suits you.”