The interest rate hikes have directly influenced sentiment creating caution in the market. The interest rate hike has influenced buyers across all pricing parameters.
This is according to Lynne Baker, Pam Golding Properties agent in The Parks areas of Parkwood, Parktown North and Parkview who says at the upper end of price levels, buyers are reluctant to commit to paying what they perceive to be elevated prices in the market as, historically, property has lost value in Johannesburg and buyers are anxious that an over-commitment would make it difficult to sell, should they need to sell as a matter of urgency.
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Buyers in the lower price brackets are concerned about affordability, for example, whether they will be able to afford to make bond repayments, should the interest rates continue to spike.
75% of the valuations done in 2022 are due to the intention of the sellers to semigrate – and some to emigrate. The majority of the sellers in the Parks are moving to the Western Cape, predominantly to Cape Town and to a lesser extent, the Garden Route.
“About 10% of our sellers are emigrating and the other 15% are those wanting to up or downscale. As such, most of the sellers are wanting to achieve top prices for their homes in Johannesburg in order to assist them in financing homes in the Western Cape (which are more expensive) or overseas,” says Baker.
According to Beverley Gurwicz, Area Specialist for Lew Geffen Sotheby’s International Realty, the erstwhile unassuming suburb of Forest Town has become especially popular with families looking to raise their children in a close-knit community where they can benefit from scenic natural surrounds.
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Forest Town
“Forest Town has managed to maintain its village atmosphere and still has, by today's standards, large homes and well-maintained, wide tree-lined streets. There are also very few remaining suburbs which are surrounded by parks and open green spaces and even fewer where residents are able to freely and safely utilise such areas.”
“Forest Towners can be seen walking, running and cycling around the suburb with their dogs and kids; especially over weekends when residents have time to stop off at one of the quaint local cafes for coffee or breakfast.”
Located at the base of Parktown Ridge and adjacent to several of the city’s most desirable suburbs, Forest Town also offers excellent value in a high value area, says Cobus Odendaal, Randburg and Johannesburg CEO for the group.
“For instance, the current median house price in neighbouring Saxonwold is R7m, whilst in Forest Town it’s a more accessible R4.2m. That said, homes at the top end of the market can fetch between R7m and R9m, so there is considerable value to be added by buying an older home in need of renovation.”
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“And, with almost 90% of the properties still being freehold and prices starting at around R3.2m, buyers have a wide choice of family homes to suit most budgets.”
Odendaal says although only 11% of the properties in Forest Town are sectional title, this sector is also performing very well, with a median sale price of R3.5m, up from R3.47m last year.
Gurwicz believes that Forest Town’s eclectic demographic adds to the suburb’s unique character: “With the university being in walking distance and a hospital nearby, many academics and medical professionals live in the area and there also a lot of creatives in the mix.
“Resident’s especially love the suburb’s walkability and sociability – there are great shops and restaurants in the suburb and there’s even a weekly children’s club where the neighbourhood children gather to play, ride their bikes and make new friends.
“The crime rate is also kept consistently low by the Forest Town Secure Village (FTSV) and a security company that provides excellent service.”
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She adds that there are also excellent schools and several places of worship in the area and suburb is also home to the Johannesburg Holocaust and Genocide Centre, the Inside Out Centre for the Arts and The Joburg Contemporary Art Foundation, Johannesburg War Museum and the zoo are also nearby.
Click here to see all the sale and listing price trends in Forest Town
The Parks
Many buyers move into the suburbs of Parkwood, Parktown North and Parkview in order to fall within the catchment areas for Government schools namely: Parkview primary, Parkview Senior, Parktown Girls High, Greenside High and Parktown Boys. These have always been superior and there is a surplus of scholars who make applications for these schools. There are also excellent private schools in the area, namely Jan Cilliers, Roedean, St Johns, Kingsmead, the Ridge, Pridwin and St Katherines, notes Baker.
These three suburbs are conveniently located to both Wits and the University of Johannesburg, the Johannesburg CBD, Rosebank, Hyde Park and Sandton, the Gautrain and Rosebank Clinic and Milpark hospitals. The M1 Highway is also easily accessible. Parkview has a well-known and frequented golf course.
These areas are manned by CAP, ADT and Safe Parkview. She says all three suburbs have strong resident associations and there is great community spirit within the areas. “Parkview is manned by its own security company and has a central park which is taken care of by the Parkview Residence Association as well as the local churches.”
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Baker says the entry level price to all three suburbs is R2.5 million. However, a R2.5 million home usually requires extensive renovation.
Parkhurst is ideally situated in proximity to Hyde Park, Sandton, Rosebank, Randburg and Johannesburg CBD. Parkhurst has the wonderful 4th Avenue where you are spoilt for choice with amazing restaurants and bespoke shops.
On 6th street, you will find a selection of antique and home décor shops as well as spas, health services and offices. The cafe society attracts an eclectic mix of people who live and work in this very dynamic suburb. You will always find dogs, children and parents in the local park, which forms the heart of this truly wonderful suburb. Currently you are able to buy into the area at prices from R2 million. Ninety percent of the stands are 495 sqm, making the properties very desirable for their low maintenance and upkeep costs, says Pam Golding Properties agent, Tarynn McMillan.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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