select
|

Upmarket diversity is fuelling the Blackheath market

Blackheath in Johannesburg is still regarded as an ideal suburb to raise a family and a growing number of  buyers are keen to become part of this stable, well-resourced community where more than a third of the residents have owned their properties for in excess of 11 years.


ELEGANT FAMILY HOME: This luxurious four bedroom, six bathroom house has a spectacular double volume entrance hall, delightful Provence kitchen and large open plan living area leading out to the entertainment patio. On the market for R10.5 million, it also has a landscaped garden, pool and tandem garage.

The broad choice of property options across all market segments coupled with a sense of community is now increasingly attracting young investors, with 35% of all properties sold in the past year being to buyers aged 35 or younger.

Gert Bekker, Area Specialist for Lew Geffen Sotheby’s International Realty says: “Whilst most of Blackheath remains upmarket suburbia, development over the past decade has introduced a cosmopolitan commercial hub as well as a high density residential node.

“The area bordering Beyers Naude Drive is now populated with a variety of shops, restaurants and cafes, which are well supported by the locals who enjoy the vibrant atmosphere. And close to Cresta Mall the sectional title developments are proving very popular with first-time buyers and single parents who want to get a foot in this upscale market and live close to good schools.”

Sectional title prices start at around R400 000 for a studio and R680 000 for a neat one or two bedroom flat, ranging up to R2.8m for a spacious modern townhouse with a private garden and all the bells and whistles.

“The housing market also offers a broad spectrum,” says Bekker, “with an entry level price of around R2m for an older three bedroom house in need of modernisation, although these are now becoming scarce as developers have begun to buy them for their large grounds to tear down and replace with cluster developments.

“At the top end of the market, we are seeing the price point nudging higher and higher with a growing number of houses now selling for between R6.5m and R8m, almost in tandem with the upper market segment spike we are seeing in neighbouring Northcliff.”

However, despite the solid growth of the sectional title and house markets, the real action in Blackheath is in the estate market, where burgeoning demand has begun to exceed supply and stock shortages are being experienced. 

Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says: “Demand for homes in secure estates has skyrocketed in Blackheath, with properties in the most sought-after developments often snapped up before they even hit the market.”

Geffen adds that, contrary to the general market response to the current economic downturn, Blackheath’s estate market is experiencing the most activity in the mid- to upper sectors rather than at the lower end. 

“Top-end estate homes priced between R4m and R5.5m are selling exceptionally well, especially in Blackheath’s most exclusive development, Brooklyn Estate, where we are currently marketing a luxurious home for R10m that is attracting considerable interest.”

Geffen believes the steady increase in demand from young investors and the tandem growth of the estate market seen over the past 10 years have been key contributors to Blackheath’s swift market recovery after the 2008 crunch, with the latter spurring growth at the upper end of the market despite the economic downturn.

Bekker says Blackheath’s commercial development has boosted the rental market as well, with the highest demand for homes within walking distance of Beyers Naude’s commercial node and Cresta Mall.

“We are also seeing growing interest from investment buyers who now realise extremely good returns, especially in the sectional title sector where demand continues to grow in response to the expanding commercial activity in Blackheath.”

Citing data from Lightstone, Bekker says: “Over the past 12 months, sectional title sales far exceeded house and estate sales with 61 properties changing hands at an average sale price of R856 164. The majority of sales (53) were in the low to middle market price band of R400 000 to R1.5m.

“During the same period 14 houses sold at an average sale price of R3.27m with eight selling in the mid-market price bracket of R1.5m to R3m and averaging R2.24m, while five transactions were in the top end bracket of homes priced above R3m, realising an average sale price of R5.3m.

Estates sales of the past year clearly reflect the markets buoyancy as 10 of the 11 homes sold were in the R3m plus price bracket with an average sale price of R4.7m. Just one home fell short, selling for R2.72m.

Bekker concludes: “Blackheath’s development success has resulted in a dynamic suburb comprising relatively peaceful, upmarket leafy residential areas where families want to raise their children and a regulated commercial component confined to specific sections that offers residents the convenience of first class amenities right on their doorsteps.

“There are also a number of good government and private schools in close proximity, which achieve excellent academic results.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK