House prices: Is Obs victim of own success?

OBSERVATORY is ranked 1344 in the city suburb ranking with an average household valuation of R1 168 631, as mentioned in the Rawson Properties suburb report which is updated quartely by Lightstone.

Obs is a suburb which is developing at a rapid pace and with development comes increases in rates, taxes and property value said Paddy Chapple city councillour and local estate agent.

The Rawston Properties subub report contains extremely interesting information which pertains to all residents in Observatory. The report contains interesting other stats

According to the report, the estimated average household income range in Observatory is from R24 000 to R37 000 and is rated as a high living standard measure.

The suburb report states that existing owners keep their homes for eleven years and more, whereas recent sellers keep homes for five to seven years and move on.

The most common age of recent sellers and existing home owners is from 36 years old to 49 years old. Those who are buying property in Observatory are aged 18 to 35 years old. This is interesting as it suggests that Obs is becoming a younger suburb.

So far, property sales have decreased from the high 2010 sales of 40 sectional schemes and 139 freeholds to 2012's sales of 14 sectional schemes and 63 freeholds.

Estate agents in Observatory says the reason for the drop is that people are holding on to their properties and not selling any off. This is creating a demand for the properties, and as soon as a property goes on the market it is sold at a high price.

No sales of execution has occurred thus far for the year moving away from the all-time high of 19 in 2003.Observatory is an area which is in demand, because it is a very central and convenient location with easy access to highways in all directions, a relatively clean and safe neighbourhood with a village feel that allows a person to walk to the shops and restaurants, dog parks and children’s parks. Observatory's Liesbeek “River features an abundance of bird-life to escape the city-feel. The dense but not over-populated demographics of the suburb together with the history and diverse group of people living here, creates a community spirit that is more special than most other places,” says local estate agent Werner Steyn. High speed internet in the area contribute to the possibility of working from home, another draw-card to the area. The Victorian charm of the houses here is another attraction.

Paddy Chapple says: “I have a feeling that we will be victims of our own success as a suburb as property prices are on the rise”.

The City conducted a general valuation of all properties on 1 July 2012. The final valuation roll will be certified by the municipal valuer and submitted to the City Manager on 31 January 2013 and the roll will be open for inspection and the lodging of objections during March and April 2013.