Parow area a hot residential market for the upwardly mobile
THE PAROW Valley and Parow residential market i s still attractive to large numbers of upwardly mobile middle-class residents – and a few downscalers – who cannot afford most of the south and central Cape Peninsula home prices, according to Alvin Suklall, the Rawson Property Group’s franchisee for Parow Valley and the surrounding areas.
“Although the area has its fair share of R1 million to R1.3m properties, most homes here are selling for between R750 000 and R950 000 and this is seen by many people as affordable.
Furthermore, prices in the area have shown a tendency to be stable despite the quite severe dips of 2008/2009 and much of 2012.
“A home we recently valued at just over R1m was bought in 2002 for R330 000.”
He said the relative stability of home prices had had one regrettable effect: there was still a tendency among large numbers of sellers to overprice their properties. Recently, he said, he gave a valuation of R700 000 on a home, for which the owner then refused to accept a sales price below R950 000. He said this kind of situation happened quite often in areas where most homes were priced below R1m and this always provided the agent with difficulties.
“An even bigger challenge than persuading clients to accept the valuation, is that potential buyers do require a fair amount of ‘financial education’. All too often, they are unaware of the National Credit Act and the impact it has had on banks granting bonds. They are often also unaware that in most cases deposits will be required and very often, too, they don’t realise that a purchase of this kind involves extra costs.
“With many of the buyers who come to us, it soon becomes obvious that they have no deposit at all and expect 100 percent or even 110 percent loans, which checks on their credit ratings by the banks will automatically rule out.”
Because so many potential buyers can’t get home loans, the demand for rental properties in Parow Valley and Parow is at an all-time high. This is why Suklall’s franchise has diversified into the rental market. He said a typical three-bedroomed home would probably rent for between R5 500 to R6 000 here and a two- bedroomed flat for around R4 500.
Suklall said that adjacent suburbs such as Elsies River, Ravensmead, Valhalla Park and Bonteheuwel had all proved to be good stepping stones on the move up to Parow and Parow Valley, and homes there could be valued from R200 000 to R500 000.
● Call Alvin Suklall on 083 3 0 1 7 1 0 9 o r e - mail p a r ow email@example.com