Residential property in Johannesburg’s Observatory remains a savvy investment

The established Johannesburg suburb of Observatory offers the trifecta of desirable residential property; value for money, convenient location and a secure lifestyle.

CHARMING FAMILY HOME: Situated in a boomed enclave in Johannesburg’s Observatory, this spacious four/five bedroom house is set in a large landscaped garden with a pool and basketball court. On the market for R3.4 million, it also has a self-contained cottage, ample secure parking and excellent security.

Luciana Castellani, Area Specialist for Lew Geffen Sotheby’s International Realty says: “Observatory not only offers proximity to the same amenities enjoyed by exclusive neighbours like Mountainview and Houghton, it also boasts predominantly freestanding homes on large grounds, but at a fraction of the price.

“In Observatory it’s still possible to buy a solid original unrenovated house for between R1.5 million and R1.8m, whilst modernised family homes, often on stands of up to 2 500m², are generally priced between R2.5m and R4m.”

According to Castellani, its excellent value for money is the reason that the suburb fared so well during the economic crash of 2008.

“Unlike most other areas, immediately after the crash we saw an increase in demand in Observatory, as savvy investors took advantage of the general market slump and excellent value. Although property prices did drop thereafter, the market remained active and recovered quickly, rewarding those investors with a good return.

“During 2008 there were 40 registered transfers in Observatory and by 2014 this number had risen to 74, with the average house price increasing from around R1.8m to around R2.4m.”

Marco Castellani, Partner Area Specialist for Lew Geffen Sotheby’s International Realty says: “In spite of the current socio-economic conditions, the market here is brisk, with the most activity seen in the mid-market segment where renovated family homes priced between R2.5m and R3.5m are very popular.

“There is also high demand for unrenovated houses due to the accessible price point of these properties, which appeal especially to younger buyers, predominantly professionals with growing families because of their affordability and great scope to add value through restoration.

He adds: “Observatory is the suburb with the highest elevation in Johannesburg and homes with a view sell at a premium.”

Lew Geffen, Chairman of Lew Geffen Sotheby’s international Realty, says that another strong drawcard is the suburb’s original character has largely been maintained, with no commercial activity other than a few small businesses in converted old homes on the main roads.

“Heritage homes are still a prominent feature and the suburb offers a family-orientated, old world gracious lifestyle, which fosters a sense of community that is reinforced by two well-managed boomed areas.

“There are also very few sectional title properties in Observatory, and a limited rental market as investors who buy homes here generally upgrade and modernise their properties to live in rather than to rent out.”

Geffen adds that because of the lack of available rental property, owners whose homes have self-contained cottages can yield an excellent rental return, which is a good way to cover a portion of the mortgage repayments in the case of bonded properties.

Observatory’s central location is one of its main attractions. Many of Johannesburg’s top schools such as Sacred Heart, Kes and St John’s are nearby and the suburb is also a stone’s throw from myriad cultural venues now situated in and around the city centre.

Nearby Eastgate Mall offers every retail convenience and Johannesburg’s oldest golf course, Observatory Golf Club, lies within the suburb.

Observatory is also only 10 minutes from OR Tambo International Airport and enjoys easy access to the highways which lead to Sandton, Centurion and Pretoria. Despite its convenient location, Observatory residents still enjoy the feeling of being remote from the eternal bustle of city living as the suburb has remained quiet and sedate, despite its proximity to busier neighbours like Cyrildene.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us