Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.

Paarl property still offers good value

14 Sep 2012

Those looking at buying property in Paarl can still find good value for their money, but these conditions may not last long.

This four bedroom, two bathroom house has a spacious entertainment area and swimming pool. It is on the market for R2.8 million - click here to view.

Earlier this year, Lizette Joubert, franchisee for the Rawson Properties Paarl franchise, predicted that 2012 would turn out to be a watershed year for housing in her area - one in which price drops became a thing of the past and the first signs of real price growth would become evident.

At the time, she qualified her comments by saying that as long as most people can remember, Paarl property has always been more stable and recession resistant than that of almost all other Western Cape towns or districts.

Joubert says that what she had predicted is now becoming obvious across the board and in the last eight months, their sales have increased by over 15%.

"Particularly relevant is the fact that in the upper brackets, i.e. R2.15 million and above, the sales have been four times as high as they were in any previous period since 2007.”

Joubert says that their waiting times are now on average, down to nine weeks (as against the national average of 17 weeks) and they are finding that any accurately priced property will sell in four to six weeks.

This three bedroom, two bathroom house has a lovely garden and is located in a secure complex. It is on the market for R2 million - click here to view.

The current difference between their asking and their achieved sales prices is now just under 10% and is therefore in line with the national average.

In the lowest priced bracket below R1 million, sales have been so good that they are now short of stock, she says. “Even though we have qualified buyers waiting in the wings for opportunities, this situation must inevitably lead to price rises in this category, if not immediately, certainly in the foreseeable future.”

Quoting a recent FNB residential home survey on Paarl, Joubert showed that this year the average price of full title homes sold in Paarl had risen to just over R1 million, while the average price for sectional title homes was just under R500 000.

This two bedroom house has a swimming pool and a granny flat. It is priced at market for R1.64 million - click here to view.

She says the full title average price is approximately six times as great as that of 2001, while the sectional title price is fractionally lower than that year.

In both categories, the latest square metre building costs are 10% to 15% below those of 2011.This would seem to indicate that developers should be able to get going again, even though in Paarl there is still a price differential of some 26% between new and second hand units, says Joubert.

Although this year has seen a marked swing in upper bracket sales, she says the big demand (45% of the total) is still in the R1 million to R2 million bracket. Here, again, average prices are well above the national figure, which is around R890 000.

In this category so far, this year Rawson Properties’ Paarl sales have been 15% higher than those in the same period last year and in the R2 million to R3.5 million bracket, 10% of the sales were recorded. The sub-R1 million bracket, previously so buoyant, is now responsible for only 40% of total Paarl sales.

Relating these figures to home sizes, just over 60% of all sales were in the 500 to 1 000 square metre and 1 000 to 1 500 square metre brackets.

Joubert says they recently sold a four bedroom home in Groenvallei on a 1271 square metre stand for R2.15 million and a double storey house in central Paarl for R2.5 million, which sold in only two days.

In the lower price brackets, Joubert says they have also just sold a 238 square metre home for R1.08 million in Dorp Street, which is zoned for business use, and rent is likely to be well over R11 000 per month.

Prices like these are very definitely still slanted in the buyer’s favour, but are satisfactory in the current market, she says. However, those who think that such prices will continue for the foreseeable future are much mistaken.

Buyers should be acting now to secure properties while interest rates and prices are at these low levels, as the current conditions will not last much longer, says Joubert.

Print Print
Top Articles
From Camps Bay to Gordon's Bay, Hermanus, Pringle Bay, St Francis and Paternoster on the West Coast plus more, here's what you'll pay for holiday flats and houses...

Across 30 malls analysed, all except two showed Black Friday week was more popular than 2018, with lower LSM shoppers spending 22.7% more on the day. Get the lowdown...

From Cape Town to Durban, Pretoria, Sandton and more, these suburbs offer homes close to good schools, with prices ranging from R1.2m up to R20m for luxury residences.

Loading

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.


Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724