Dunkeld West’s prime position in the heart of Johannesburg north coupled with commercial development in the area is stimulating demand for rental properties, creating an opportunity for prospective investment buyers to field decent returns on their assets.
This is according to Shaun Groves, Gauteng Rental Manager for Lew Geffen Sotheby’s International Realty, who says: “There is an insatiable appetite for well-priced properties in Dunkeld West where spacious family homes set in generous gardens on tree-lined streets offer a haven from the urban jungle, just five minutes’ drive from the Sandton CBD”.
“However, rental homes here are few and far between and most available stock is sectional title rather than the more sought-after freestanding homes”.
“One and two bedroomed apartments are realizing rentals of between R14 000 and R25 000 per month, three bedrooms north of R30 000 and a four bedroom house can fetch between R60 000 and R70 000, but security must be to the highest order, especially for the expat market.”
Kass Bunkell, Area Sales Specialist for Lew Geffen Sotheby’s International Realty, says the majority of investors in Dunkeld West buy property to live there rather than rent out. This has been the general trend for many years.
“It is therefore an excellent time for investment buyers to purchase property in the area as there is currently a broad range of homes for sale and the rental returns are outstanding”.
“Flats start at around R2 million with the top end of the market being about R6m for a spacious, upmarket apartment and houses and modern clusters range between R5.5m and about R9m.”
Bunkell adds that while freestanding homes still dominate the property landscape in Dunkeld West, there has been an increase in the number of sectional title and cluster developments in recent years.
“A number of old freestanding homes have been demolished and replaced with exclusive cluster developments of up to four homes and new sectional title blocks have popped closer to the main arterials and local business hubs”.
“Twenty of the 23 sales between February 2016 and January this year were sectional title homes, with the majority of these sales (13) being in the R1.5m to R3m price band at an average sale price of R2.35m”.
“Four sales were in the R3m-plus bracket at an average price of R4.17m and only three units sold for under R1.5m.”
She adds that the three house sales during the same period averaged out at R9.4m, with one of these sales taking place during the past three months at R9m.
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says the steady increase in demand for rental property has largely been driven by the rise in commercial activity in Dunkeld West, especially on Bompas Road where commercial property generally commands a premium of between R130m² and R160m².
“Dunkeld West lies just off Jan Smuts Avenue, one of the major arteries in Johannesburg that literally sweeps through the key nodes of the northern suburbs from the city centre, via Rosebank. The suburb is also a stone’s throw from Hyde Park and Melrose Arch”.
“Despite Dunkeld West’s proximity to vibrant retail and entertainment nodes it has largely retained its tranquil suburban atmosphere and is home to a beautiful, well-maintained park that is not only used by the local residents but it’s also popular with families who live in neighbouring suburbs.”
Geffen concludes: “This truly is the heart of old Johannesburg and remains one of the most sought-after, desirable suburbs in the city from both a buy-to-live and rental point of view.”