Houghton is one of Johannesburg’s oldest suburbs marked by wide, tree-lined streets and beautiful old mansion style homes now blending alongside the more modern equivalent.
This luxury mansion style home is on the market through Amour Properties and priced at R18m.
The suburb of Houghton Estate is in the northern suburbs of Johannesburg and borders on Saxonwold, Parkwood, Melrose, Norwood and Killarney. In the south eastern corner Houghton borders on Observatory and Bellevue East.
The suburb is unofficially divided into Lower Houghton and Upper Houghton on the southern side where the Houghton ridge starts.
Homes in Houghton are generally on acre stands with some half-acre stands.
Prices range from R4m to R30m, says Jonathan Davies, Hyde Park branch manager at Pam Golding Properties. “The position within the area also plays a role in determining value, and generally, the smaller the property, the higher the per square metre rate.”
According to WinDeed statistics for this year, the average price per square metre for erven was R2 100 and R7 990 for sectional schemes, while the average bond percentage was 76% for erven and 85% for sectional schemes.
A search on Property24.com showed properties listed by estate agents ranging from a one-bedroom apartment priced at R399k to a two-bedroom cluster at R2,999m and at the top end a “palatial mansion” on 4000sqm priced at R18m.
A PropIQ report showed that the average price for a freehold home was R4,4m for 2011 while in 2010 it was R3,88m down from 2009’s average of R4,5m. However, the general trend shows a steady increase in the value of freehold properties sold over the years.
Although most homes are still on large stands there are some older blocks of flats and some newer apartment blocks, which are situated close to the Houghton golf course.
This modern 3 bedroom cluster is on the market through Adrienne Hersch Properties for R3,999m.
Davies says there is a big demand for cluster living, but the sectional title market in Houghton generally consists of older buildings, which don’t come onto the market that often.
The typical price for a new cluster, says Davies, would be about R2,5m for the 1000sqm land and a further R10k per square metre for the building, and this would be with “very good finishes”.
“We have second hand clusters selling for between R 3,2m and R 15m,” he says.
The Houghton golf course development is the latest sectional title development and was re-launched last year with phase one sold out and phase two on show. Two bedroom en suite 150sqm units are selling from R3,49m and three bedroom 175sqm units from R3,75m.
A 1 236sqm penthouse has already been sold for R29m, says Lawrence Kreeve, CEO of The Houghton. All penthouses in phase two have their own roof terrace and pool ranging in size and price, with some 825sqm and 412sqm units available. A 700sqm garden duplex is on the market for R23,9m and a 375sqm unit is priced at R10m.
The golf course has a new clubhouse which residents will have access to and a Private Resident’s Club with gym, pilates centre, pool and deck, sauna/steam room, juice bar and wine lounge plus business facilities is on the cards.
A 7km running, walking and cycling track gives residents access to 168sqm of outdoor space and the entire golf course is enclosed with electric fencing.
All have spectacular views and overlook the golf course, with those on the 2nd Avenue side able to see the Sandton skyline.
There is a mix of buyers, says Kreeve, with many downsizing or opting for a safer environment and some foreign buyers who spend part of the year in Johannesburg. It is ideal for families with all the outdoor space, golf course and other facilities planned, and it offers a safe and secure living environment.
Kreeve says phase one comprising of 50 units is expected to be completed in November this year while phase two will be ready for occupation in November 2012. A hotel is also being planned for the future.
Davies says there are many subdivisions in the area, and while the older subdivisions allowed for four units per acre, for the last couple of years, subdivisions of less than 1000sqm have not been allowed. “This has caused an increase in prices as there are only three opportunities per acre rather than four.”
This 5 bedroom home with indoor and outdoor entertainment areas is on the market through Lew Geffen / Sotheby's for R10m.
The average age of those who bought in Houghton this year was 45 years, with the oldest buyer being 74 years, according to data extracted from WinDeed.
“We find that people stay in their homes for long periods 20-35-50-60 years mainly because of the proximity of the schools,” says Tilly Wood of Firzt Realty in Houghton. She says the suburb is “very cosmopolitan, with professional and down to earth people”.
Ronald Ennik MD of Leapfrog Property Group concurs. “Houghton is our most cosmopolitan top-end area and home to some of South Africa’s top business people and most prominent politicians”.
Houghton is one of Johannesburg’s “aspirant” areas says Ennik and offers a “level of comfort” in that people recognise the names of personalities who live in the area.
“It is popular with the Indian community, remains so with the Jewish community and is favourable with the emerging black middle class,” he adds.
“When prices go up or come down as they do in the property cycle, Houghton is not as affected as other areas,” says Ennik.
He says that in a study done by the Leapfrog Property Group which looked at top-end suburbs across the country over a 14 month period from January 2010 to February 2011 in the over R5m price bracket, Houghton relative to other area was a “big surprise”.
“Out of the whole region it was the third biggest area for turnover for properties over R5m with sales totaling R132m and 17 properties sold in this price bracket. The average price was R7,8m,” says Ennik.
During the market crash of 2007/8, says Davies, Houghton reacted quite differently to the rest of the market. “Houghton prices remained almost flat, but unit turnover dropped. This showed that the sellers were happy to hold on to their properties until the market recovered rather than sell at a price that they deemed to be discounted.
“Obviously the ‘under pressure’ sellers were negotiable and willing to accept lesser prices,” he adds.
According to Davies market activity in the area is good and Pam Golding Properties receive an average of 10 visitors to their show days. “Buyer enquiries are good, but like the rest of the SA market, very few buyers are committing to offers. On the other hand, the cash buyers are aggressive in their offers and managing to secure properties at prevailing market conditions.”
The area has some of the country’s top schools including St John's College, King Edwards VII Boys High School (KES) and Roedean School for girls. This alone bodes well for the area as good schools will always affect demand in the area.
Houghton is 20 minutes’ drive to the airport, close to Johannesburg CBD, Rosebank, Melrose Arch and affords easy access to Sandton and other major routes.
On crime in the area Tilly Wood of Firzt Realty says: “From my experience, and I have lived here for 20 years, it really is not a problem area although many people seem afraid of the Yeoville element.”
She adds that if a client is interested in buying a property “anywhere out of their comfort zone” she suggests “they call the neighbouring properties and speak to them” as a way of finding out what is really happening in the area.
“I don’t believe that crime is area related, they are opportunists and often follow a car that meets their needs or see expensive jewellery being worn in the shopping malls,” she says.
Davies says that “since Cap (the community policing forum which notifies residents of crime issues by SMS and involves the community in being the eyes and ears of the suburb) has been implemented, we have seen a drop in the crime rate.”
Rates vary from R1,5k to R5,5k per month for freestanding homes, says Davies, while the smaller sectional title units average around R300 to R700 per month.
On the rental market front, says Davies, the area is mostly owner occupied. “However, there are a number of units for rent, which do seem to get good returns. There are rentals as high as R100k per month but not many of them and the area is often on the list of Corporates looking for rental properties.”
On whether Houghton is a good place to invest Davies says: “Prices have declined across the board. Hence as prices are still low and the offering is well packaged in terms of position and the future, it is a good time to buy.” - Julia Hinton
To have a look at what’s on the market in Houghton, click here.
Readers' Comments Have a comment about this article? Email us now.
Print
