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
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us