The Paulshof market is showing strong signs of recovery after a very subdued third and fourth quarter of 2016 with agents reporting a spike in interest since the beginning of the year from a growing number of buyers who are recognizing the investor potential of sectional title properties in this northern Johannesburg suburb.
This is according to Jade Bradnick, Area Specialist in Paulshof, BBQ Downs and Sunninghill for Lew Geffen Sotheby’s International Realty, who says: “We really felt the impact of the market downturn from mid-2016 when sales dropped significantly and we were suddenly dealing with many distressed sellers and properties over-priced for the prevailing economic conditions, but this seems to have stabilised since January”.
Bradnick says that the most interest has been for studio and one bedroom apartments that are yielding solid returns in an increasingly popular market.
“Entry to mid-level prices for sectional titles units range between R550 000 for a modern studio to around R1.2m for a two or three-bedroom flat with two bathrooms, depending on the complex”.
“Monthly rentals for studio apartments are between R5 200 and R6 500, one bedroom units are from R6 800 to R10 000 a month and two bedroom flats generally realise monthly rentals of between R8 000 and R12 000.”
Bradnick adds that, although not quite as active, the top end of the sectional title market is by no means dormant with a variety of upmarket options available for between R1.5m and R2.8m and the upper end of the rental scale comfortably nudging R16 000.
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says: “Entry level to mid-range freestanding houses and cluster homes in secure complexes are also very accessibly priced between R1.8m and R2.8m, which makes Paulshof very attractive to young families and professionals”.
“The suburb is also very conveniently situated adjacent to the N1 and N3 freeways which afford residents an easy commute to Fourways, Sandton and Midrand and there are several excellent schools within a five-kilometre radius, including Bryanston Parallel Medium, Rivonia Primary, St Peters Primary and St Peters High Schools”.
“The growing appeal with younger buyers is clearly evident when one analyses recent buyer data from Lightstone” says Geffen, “which reveals that 50% of all new investors during the past year were aged 35 and younger.”
He adds: “Paulshof still has a lot of older properties and over the past few years we have seen a marked increase in renovation in the area by both buyers and existing residents.”
Underpinning the market’s buoyancy is the suburb’s growing reputation as one of the safest suburbs in the area with a strong sense of community.
Says Bradnick: “There are a few boomed-off areas that are extremely popular with investors but the success of Paulshof’s active security drive has noticeably impacted the whole suburb with very few incidences of crime reported since its inception”.
“The residents are very involved and communal platforms such as Facebook and Whatsapp groups have been created that keep everyone up to date on a broad range of matters, from security issues to social gatherings and even missing pets.”
Residents have also taken it upon themselves to maintain their section of the Braamfontein Spruit and have set up a recycling system for the whole neighbourhood.
“Paulshof is often referred to as the ‘garden village of the north’ as it is nestled between the Rietfontein Ridge Nature Reserve and the spruit, with its northern quarters flanked by open land, giving the well-developed suburb a distinctly country feel,” says Bradnick.
Residents also have an array of amenities right on their doorsteps, including two excellent shopping centres within the suburb, a choice of restaurants and cafes, the German Country Club and the Rivonia Recreation and Sports Club.