Weekend Argus (Saturday Edition)
Buoyant Paarl market continues to attract upcountry buyers,‘swallows’
THE RESIDENTIAL property market in Paarl has maintained its steady growth over the past two decades and as it becomes increasingly popular with buyers looking to move away from the cities, the area is suffering a significant shortage of sale stock.
According to Miranda Coetzee of Lew Geffen Sotheby’s International Realty, Paarl offers exceptional value for buyers, particularly those coming from upcountry, and they are fielding an increasing number of queries from Gauteng buyers.
Coetzee says: “In suburbs such as Denneburg and De Zoete Inval you can still buy an older three-bedroom house for between R1.2 million and R1.5m. The low to mid-segment of the market is most active and properties priced between R1m and R2.5m are often sold within weeks of being listed, but there has also been a marked shift upwards in the higher price brackets.
“In northern Paarl, where prices used to be lower, you can’t easily find a family house nowadays for under R1.5m. Prices for family homes are generally from R1.8m and upwards. Two years ago you’d easily have picked up a decent three-bedroom family home for around R1.2m, but those sorts of sales figures just don’t exist anymore. If a house is priced correctly in the current mar- ket, it’ll sell almost immediately,” says Coetzee.
At the upper end of the market, prices for houses in central Paarl above the main road that offer views and are near the town’s best schools and amenities generally start at R3m, but those are entry level prices for properties that require renovation.
“At the top end of the market are the luxury estates like Pearl Valley Golf and Country Estate and Val de Vie, which are particularly popular with Gauteng buyers,” says Coetzee. “They now account for about 60 percent of the estate sales, and in town they make up around 40 percent investors”.
Coetzee says that investors are willing to pay top dollar for the lifestyle and security the estates offer and these soughtafter properties generally range between R4m and R9m, although prices can exceed R20m for exceptional homes. There are also a number of townhouse estates and smaller gated estates in Paarl.
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty says: “We are also seeing an increasing number of buyers from the northern suburbs of Cape Town and the number of weekly commuters from Gauteng is also growing because the airport is just 40 minutes’ drive away.
“There are many factors which attract buyers to this Boland town, but the main draw card for families remains the excellent schools in the area, including Paarl Boys’ and Paarl Girls’ high schools, as well as Paarl Gymnasium.”
Geffen says the strong demand for property for sale and to let has resulted in stock
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our new shortages in certain areas in Paarl.
Coetzee says the area is also popular with retired people from upcountry and when a property in one of Paarl’s two retirement estates come onto the market it is quickly snapped up as they offer excellent facilities and frail care service, as well as secure living.
“We are also seeing a growing demand from the so-called “swallows” who like to follow the sun and leave Europe during the winter months, heading for the sunny Western Cape.”
Convenient location is playing a large part in the town’s increasing popularity. Not only is it only 40 minutes from Cape Town, but Paarl is also within easy reach of neighbouring town such as Wellington, Franschhoek and Stellenbosch.
Another reason for Paarl’s growing popularity is that it offers a wider selection of property options than most neighbouring towns; from entry level bachelor apartments priced at around R500 000 to modern luxury homes which nudge the R20m mark.