Observatory and Woodstock are the suburbs to be in 2015

Stock shortages have been very much in evidence for most of this year in Observatory, Woodstock and Pinelands, says Craig Gilfillan, the Rawson Property Group’s franchisee for these suburbs.

“There has been a slight increase in homes for sale just recently, which is probably due to the onset of summer and to the expiry of many rental leases, but stock acquisition has become and will remain the big challenge facing most estate agencies in the southern suburbs,” he says.

When homes do come up for sale, say the Rawson staff at Observatory, they are usually signed for in under two weeks.

As almost always happens when stock is in short supply, price rises have peaked. Gilfillan estimates that on the homes he and his team have sold this year the average year-on-year value increase has been 15 percent to 20 percent – with slightly less spectacular rises at the top end of the area’s price scale, which ranges from R1.2 million to just under R4m. Sectional title units make up about 15 percent of the total.

Gilfillan says that a three-bedroom home which was sold recently for R2.4m was bought last year for R1.7m.

“Value increases of the size we have been seeing should, however, not deter those who have the resources from buying here and are prepared to wait patiently for opportunities. A radical increase in the interest rates, could slow down sales but we don’t believe this is likely to happen in the next year.”

Gilfillan says there is strong demand for rental properties, bolstered by a large student population. Two-bedroom homes in Observatory now rent at R8 000 a month or more and three-bedroom homes at R12 000. This Rawson franchise now manages more than 100 properties, but staff say they could find tenants for many more homes if stock was available.

Surprisingly, however, Gilfillan says that relatively few of Rawson Observatory’s buyers are buy-to-let investors.

Gilfillan says the main reasons for the ongoing demand in the area are its proximity to the city centre, UCT and Groote Schuur Hospital; the cosmopolitan appeal and large number of restaurants; attractive architecture, with many Victorian homes built between 1890 and 1920.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us