One of the more remarkable features of the Paarl residential property scene this year, says Lizette Joubert, the Rawson Property Group’s franchisee for the area, has been that despite Paarl now being a seller’s market – especially in the lower price brackets – prices still remain fairly stable, increasing on average by her estimation at only 6 to 8% per annum. What is more, says Joubert, this means that the area still offers exceptional value to buyers, particularly those coming from elsewhere.
“The Paarl franchise’s success is not only an indication of the property market in the area but also is attested to the level of professionalism of Lizette and her team as well as the faith and support that the local community has in their abilities,” says Albutt.
“Lizette Joubert’s latest figures show that the majority of sales (55%) are still taking place in the ever popular middle bracket, which at Paarl means houses priced between R1 million and R2,5 million. Here, it seems, if a home comes onto the market it usually sells within three weeks. Above that level, although demand is increasing and the area has many upper bracket homes, these sales comprise less than 10% of the Rawson Paarl’s total for this area. By way of contrast, the lower bracket homes (R350,000 to R1 million) have now been able to generate 37% of their sales.”
Lizette Joubert says that the significant number of sales achieved in the lower bracket is probably not altogether typical of most Paarl estate agencies but is due to her franchise a year ago establishing a dedicated Paarl East satellite office, with her husband, Arno, as the manager. This has been a good business decision and has helped a great deal in satisfying consumer demand.
“In this price range,” says Joubert, “the big demand is for homes priced at anything between R600,000 to R800,000. In the middle bracket price range the demand is focused mainly around R 800,000 to R1,5 million.
Looking ahead, Joubert says that a revival in the upper bracket homes will eventually come about and has still to materialise. This scenario could change within the next 12 to 18 months.
“However you measure it,” says Joubert, “what Paarl can offer in upmarket homes, especially at estates like Val de Vie, Pearl Valley and Boschenmeer, with which we are involved, and are exceptionally good value, especially when compared with similar homes closer to Cape Town or in Stellenbosch.”
The stock shortage in the popular price brackets, adds Joubert, has led to one or two sellers going the DIY route and dispensing altogether with an estate agent.
“While it is understandable that some people enjoy handling this type of operation themselves, we, as estate agents, have to warn those doing this that we have seen several cases where over-confidence combined with a lack of in-depth real estate knowledge has led to people making costly mistakes. It has to be appreciated that legislation surrounding real estate is complicated and there are numerous pitfalls which only those experienced in this field will recognise and avoid falling into. There is an old saying which rings true; “If you think it’s expensive to hire a professional, wait until you see how expensive it is to hire an amateur.”
The Rawson Property Group’s Paarl office can be contacted on (021) 872 8385.
