Good news for Paulshof property owners as buyer interest spikes

The Paulshof property market is showing strong signs of recovery after last year’s very subdued third and fourth quarter, after real estate agents reported a spike in buyer interest since the beginning of the year.

Buyers are now recognising the investor potential of sectional title properties in this northern Johannesburg suburb. This according to Jade Bradnick, area specialist in Paulshof, BBQ Downs and Sunninghill for Lew Geffen Sotheby’s International Realty. Bradnick said, “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 overpriced for the prevailing economic conditions, but this seems to have stabilised since January.”

She said the most interest has been for studio and one-bedroom apartments which 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.”

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Bradnick added 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 said, “Entry-level to mid-range freestanding houses and cluster homes in secure complexes are also very accessibly priced at 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 5km radius, including Bryanston Parallel Medium, Rivonia Primary, St Peter’s Primary and St Peter’s High Schools.

“The growing appeal with younger buyers is clearly evident when one analyses recent buyer data from Lightstone which reveals that 50 per cent of all new investors during the past year were aged 35 and younger,” said Geffen.

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“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.

Bradnick said, “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,” said Bradnick.