Parkmore offers buyers the holy trinity – location, value for money and ROI
Parkmore may be located within a stone’s throw of the bustling Sandton CBD in Johannesburg, but it has retained its tree-lined and tranquil suburban character, which is one of the primary reasons that the market in this sought-after suburb not only recovered fully from the credit crunch of 2008 but has also enjoyed substantial growth in recent years.
This is according to Karen Bosman, area specialist for Lew Geffen Sotheby’s International Realty, who says that statistics from the Deeds Office clearly reflect the steady the growth of recent years.
“In 2009 the median sale price of a freehold home was R1.8 million and, despite the subdued market at the time, the price didn’t stagnate and was just shy of R2m a year later.
“However, by the end of 2014 the average sale price had jumped to R2.3m and the close of 2015 saw the median house price hovering around the R3m mark.”
Unlike most of its neighbours, Parkmore has seen very little sectional title development and the property landscape in the suburb is still predominantly made up of freestanding homes, with a handful of sectional title developments in the mix.
Says Bosman: “Deeds Office records for 2015 show that 10 months into the year there were only eight sectional title sales in Parkmore, while 88 single title properties changed hands during the same period.”
She adds: “But, when they do become available, sectional title properties offer first-time buyers an excellent foot into the market as the average price of these properties is still very accessible and a comfortable mid-level home in a sought-after area can be bought for around R1.8m.”
According to John Bosman, co-area specialist for Lew Geffen Sotheby’s International Realty, there are currently few entry level opportunities in Parkmore. There are also limited sectional title offerings and few remaining unrenovated houses.
“If one is lucky or very patient, an older home with original kitchens and bathrooms can be bought for around R2m, but these require more than just a little TLC and a lick of paint and are few and far between.
“However,” says John Bosman, “the mid-level market in Parkmore offers excellent value for money as it is still significantly more affordable than similar properties in prestigious neighbouring suburbs like Sandhurst and Hurlingham.
“Depending on position and level of renovation, a spacious three or four bedroom home on a sizeable erf will cost between R2.8m and R3.3m.
“It’s therefore no surprise that this is currently the most active segment of the market.”
Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says that investor confidence has also played a significant role in the recent growth spurt experienced in the market.
“This is evident in the amount of renovation currently being undertaken in the area as existing owners further invest in their properties with general upgrades and modernisation in anticipation of an increased return on investment.
“Another indication is the increasing number of investors looking for older homes in order to “flip” them, with many already having realised excellent returns.”
According to Geffen, investor confidence is inspired primarily by Parkmore’s ideal location adjacent to South Africa’s financial hub, but the suburbs tranquil suburban atmosphere is also very appealing, especially to aspirant professionals with young families who are now the majority of new investors.
“Parkmore may be just a short distance from downtown Sandton, but it’s primarily a residential area with limited and controlled commercial activity which is mainly found on the streets running parallel to the arterial roads, with a scattering of small businesses in converted homes on designated streets within the suburb.”
According to Karen Bosman, an emergent trend in Parkmore has also helped to place the suburb firmly under the spotlight and raise its status.
“Parkmore is attracting an increasing number of blue chip events these days, and most recently played host to The Mandela Festival and the Live Jazz Festival as well as Mercedes Benz’s prestigious AGM Tour.”
Other drawcards include Parkmore’s easy access to several good government schools and many of the best private schools as well as the George Lea Sports Park which offers extensive sports facilities, including cricket, soccer, tennis and volleyball.