02 Jul 2013
With easy access to transport routes and more affordable pricing than properties located within the Sandton CBD, many young executives and families have made Paulshof their home, says Adrian Goslett, chief executive officer of RE/MAX of Southern Africa.
Goslett points out that data from Lightstone shows that nearly 60 percent of recent buyers in the Paulshof area were under the age of 35.
The next largest demographic were buyers aged between 36 and 49 years old, who represented 24.22 percent of the market while the biggest group of recent sellers was fairly evenly split between those aged 18 to 35 years old and those aged between 36 and 49 years old, who made up 35.17 percent and 37.59 percent respectively.
He says most properties in Paulshof are situated within a complex with around 70 percent sectional title homes, 12.48 percent freehold homes and 17.4 percent estates.
“Since as far back as 2004, sectional title units have consistently outsold freehold homes in the area and 2012 was no different, with 242 sectional title units sold, compared to 81 freehold homes.”
However, Goslett notes that since 2008 the average price of a sectional title unit has remained fairly stable, while the average price of a freehold home has shown remarkable growth.
“The average price for a freehold home during 2012 was R1.71 million, which is higher than the average price seen during 2007, widely regarded as the height of the boom period and the average price of a sectional title unit during 2012 was R830 000, the same price seen in 2008,” he says.
Asked about the prices for properties sold, he says between January and December 2012, nearly half of all properties sold in Paulshof fell within the R800 000 to R1.5 million bracket, 34 percent were priced between R400 000 and R800 000, approximately 17 percent were priced between R1.5 million and R3 million and only one Paulshof home was sold for more than R3 million during 2012.
Compared perhaps with the likes of the ultra wealthy suburb of nearby Bryanston, Paulshof has its own advantages apart from steadily growing prices.
Owning a home in Paulshof
According to homeowner, Paul Walker, although Paulshof is not one of Gauteng’s sought-after home locations, Paulshof is probably the best property investment opportunity in the Sandton area.
Walker has lived in Paulshof for 10 years and during this time, he has seen how the whole area has 'come to blossom like the ugly duckling turned into a swan'.
“I for one, like most other residents, will probably stay for life, but if I do have to sell one day then I hope my prediction is right,” says Walker.
Click here to check out the Paulshof community.
Originally part of Sandton, Paulshof property is now part of the Greater Johannesburg Municipal Council Region A and is bounded by the Western Bypass on the South, Leeuwkop Estate on the north, Sunninghill on the east and Lonehill on the west, a location considered Gauteng’s safe open suburb.
The suburb was originally named after Paul Mare, who farmed this part of the greater Rietfontein Farm and his sons continued to live in the area until quite recently, according to Renprop estate agents operating in the area.
Another farmer in the area called Laing, called his Paulshof property Kildrummy, and Paulshof, for a while, became known as Kildrummy-Paulshof.
A dispute arose and in the late 1970s, in an effort to promote Afrikaans suburban names, the suburb was renamed Paulshof, the Garden Village of the North.
The Paulshof property precinct runs from Main Road Bryanston to Rivonia Road extension.
Walker concurs with Goslett that Paulshof is a vibrant pot of cultures and different age groups offering various types of properties to suit all buyers.
“Paulshof has a very active community forum who, over the years has worked with residents, city parks and the various security companies to uplift the overall area, its greenbelts, general public areas, pavements and streets.
“Its greenbelts offer public space for young and old to relax and enjoy, for families to walk their dogs and kids to freely play,” says Walker.
Other added selling points is that the suburb offers an all round security system comprising of CCTV, dedicated security patrols as well as added street access booms.
More so, is that the average home in Paulshof has a generous 1 500 square metre stand and most homes have been upgraded to modern standards, explains Walker.
Access to the freeways has also been dramatically improved with the Gauteng freeway upgrade project, offering residents a fast connection to Sandton CBD, Johannesburg, Randburg and to the City of Tshwane.
Home prices in Paulshof
“What is such a fantastic opportunity is that the current property values in Paulshof have not yet caught up with the market, thus allowing a prospective investor to come in at unbelievably good value for money.
“So if you are looking for an opportunity to invest in an upmarket and upcoming area at undiscovered bargain value, then this is it,” says Walker.
On pricing, Walker says he doesn’t understand why Paulshof is lagging behind in value compared to its neighbouring suburb such as Sunninghill.
Last year, Property24 spoke to various estate agents and the community to find out Why Sunninghill homes are in demand – it seems the collaboration of the community working in partnership with agents when it comes to selling and renting homes is good for property values and the security of the area.
“I consider Paulshof a much better place to own a home than areas such as Sunninghill, Lonehill and even parts of Bryanston and of course, municipal taxes and rates are still reasonable,” says Walker.
According to a WinDeed report, the average price of a freehold home in Paulshof in 2013 is R1.902 million with 30 properties sold so far. This average price has come down from its highs of R7.950 million in 2007 when 82 homes were sold, following the global economic prices, the average price fell to R5.7 million with only 48 homes selling and in 2010, the average price fell further to R1.610 million and 68 homes were sold.
The sectional title sector has seen growth since 2007 when the average price was R760 000 and 320 sectional title units were sold. In 2009, this went up to R842 500 but the number of units sold fell to 148.
Sectional title average price fell in 2010 to R800 000 with 151 units being sold and in 2013, the average price rose to R900 000 and 73 units have sold so far.
According to the report, in 2007, the average price of a farm was R14. 500 million (1 sold) and in 2011, the average price grew to R50 400 million and two farms were sold that year.
Buying property in Paulshof
According to Jean Bekink, Pam Golding Properties (PGP) agent for Fourways/Dainfern office, while there are a number of newer property developments in Paulshof it is one of the older, more established suburbs in the region offering attractive suburban living near to the heart of Johannesburg.
PGP finds that many people who buy in the suburb come to appreciate it and stay on through the various phases of their lives, buying up from sectional title homes, which are in considerable demand by first-time buyers, to larger clusters and freehold homes when they start their families.
Many stay on in the suburb into their old age, according to the agency.
“Paulshof holds great appeal for all buyers and offers outstanding value, attracting many first-time buyers and professionals,” says Bekink.
Those with children appreciate the many good schools that are to be found in the area, the likes of St Peter’s Preparatory School – one of the most highly regarded private preparatory schools in South Africa and not far from the suburb, schools include St Stithians College, Brescia House, Redhill, Michael Mount Waldorf School, Crawford College, British International College and The French School Lycée Jules Verne.
Bekink says sectional title homes are very much in demand with first-time buyers and there are 2 500 sectional title homes in the area.
“The average price for a two bedroom, one bath sectional title home is R750 000 or R850 000 for a two bedroom, two bathroom property.
“Clusters and freehold homes are priced between R1.7 million and R3 million,” says Bekink.
Paulshof is a quiet suburb and residents appreciate that there are few shopping centres or other developments in the area, giving it a serene atmosphere.
“It is very central and is near to all amenities and is likely to remain a robust property market well into the future,” according to Bekink.
According to Dave Wright, Rawson Properties Paulshof franchisee, Paulshof remains a very popular suburb with 288 transfers in the last 12 months (June 2012 to May 2013).
Wright notes that the average selling price of property in Paulshof is R 1 091 000 (sectional title apartments and freehold homes).
“Freehold homes have shown excellent growth of 40 percent in value from 2008 to December 2012, with the average selling price of freehold property being R 1 719 000 as at December 2012,” he says.
The average selling price for freehold properties increased further in 2013 (as at May 2013) to R 1 901 000 while the average selling price of sectional title properties remained static around R830 000 between 2008 and 2013.
Approximately 60 percent of the buyers of property in Paulshof are between the ages of 18 and 35, points out Wright.
“To many people’s surprise, the majority of Paulshof buyers qualify for bonds easily and my success rate on home loan applications is between 85 and 95 percent in any month,” he says.
Buyers look for properties priced between R800 000 to R1.5 million but one can easily buy a one bedroom sectional title unit in Paulshof priced from R600 000, while at the top end of the market, three or four bedroom homes are priced up to R3 million.
“What all Paulshof homes currently have in common is that they genuinely offer exceptionally good value for money.”
Wright says the sort of home that they can sell for R2.5 million will cost at least double that amount in Bryanston - less than 1km 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.”
Renting in Paulshof
Bekink says rental demand is high in Paulshof mostly dominated by sectional title and cluster homes which fetch an average of around R6 000 per month.
There are few freehold homes on the rental market as these are usually bought by individuals who are looking for a home for themselves and those that are rented out fetch between R10 000 and R15 000 per month.
Wright reports that they see demand for one bedroom apartments priced for R5 500 a month to R15 000 per month for a three bedroom, two bathroom freehold home.
“Good quality rental stock is in demand and rental stock shortages are experienced as demand outstrips supply,” he says.
According to the Tenant Profile Network survey, estate agents across the country reveal that the residential property market faces good quality rental stock shortages with 94 percent of respondents indicating a shortage of rental properties.
Read the article here.
Properties in Paulshof have generally held their value even during times of economic hardship, which is always a good sign for those looking to make an investment in an area, adds Bekink. –Denise Mhlanga
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