Rarity value boosts home prices in Parkhurst

Posted On Tuesday, 08 December 2015 17:01 Published by
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With stands that average only 495sqm, Parkhurst is rapidly becoming home to some of the most expensive real estate in Johannesburg, according to local Rawson Property Group franchisee Justin Smith.

“House prices here currently start at around R2,5 million for a standard three bedroom, two bathroom home and range all the way up to around R7 million for homes that have been substantially remodelled and modernised – but are still only on 495sqm of land,” he notes.

“According to property data company Lightstone, the current average house price in Parkhurst is R3,2 million, and to further underline the high value of real estate here, a very rare 1000sqm stand in the area recently went on sale for just under R3 million.” The area has also seen a phenomenal growth of just over 80% in the average price since 2008.

Nestled between Victory Park and Craighall Park, Parkhurst is one of the group of northern suburbs that Johannesburgers generally refer to as “The Parks”, and that also includes Parktown, Parkview, Parkwood, Westcliff, Saxonwold and of course Hyde Park.

The whole area is sometimes also referred to as the “Purple Patch”, in reference both to the abundance of Jacaranda trees that line the quiet streets, and the amount of “old money” that resides here. “The statistics show that more than half (52%) of the homeowners in Parkhurst, for example, have lived there for more than 10 years – but actually there are many homes in the area that have housed three generations of the same family,” says Smith.

This poses something of a problem for the growing number of people who would like to buy a home in this suburb. “The statistics also show that almost a third of recent buyers in Parkhurst have been under 35 and that there is thus a new generation keen to move here but the total number of home sales has actually dropped by 42% over the past two years, because of a ‘’lack’’ of homes to sell.

“There just isn’t enough stock to meet demand, because those who do own homes here are generally reluctant to sell. They would rather renovate or extend their existing homes than move somewhere else.”

However, he says, this trend does have the benefit of giving homes in Parkhurst an additional ‘rarity value’ that drives prices up even more – which makes it an excellent investment choice for those who are able to snag a home here.

“There is also plenty of margin now for those who own one of the original homes here to improve, extend and modernise without any risk of over-capitalisation.”     

Parkhurst is not a large suburb and, laid out on a neat grid of six avenues and 22 streets, with the Braamfontein Spruit forming its western border, it is very secluded due to the fact that it has no main arterial roads running through it.

Like a village it has a “high street”, made up of the trendy restaurants, sidewalk cafes and shops along Fourth Avenue, which has steadily become one of South Africa’s best-known dining destinations and attracts many visitors, especially over weekends.

It also has the very active Parkhurst Village Residents and Business Owners Association, which not only works to preserve the village atmosphere of the suburb, but runs the annual Parkhurst Village Fair in Verity Park and this year launched the SafeParks security initiative and the Parkhurst GoGreen project, which aims to make the suburb one of the most environmentally friendly in the country.

Other attractions of the suburb include the fact that it is just a short distance from the King David primary and high schools in Victory Park, from upmarket shopping malls in Hyde Park and Victory Park, and from the enhanced shopping experience in Rosebank and the Gautrain station

Last modified on Tuesday, 08 December 2015 18:11

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