Paarl emerges as Cape Town's affordable alternative as city prices climb
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With Cape Town residential prices up 11.5 per cent, buyers are looking to Paarl Rural, where a 47-square-metre two-bedroom flat is listed for under R500,000 and the average sale price sits at about R939,000.
Cape Town buyers and investors hunting for affordable property may have to widen their net, after the most recent Statistics South Africa data showed residential property prices in the city rose 11.5 per cent, with prices in many parts of the metro reaching record levels.
In Paarl Rural, a handful of listings advertise flats for under R500,000, at prices below R10,000 per square metre. One listing for a 47-square-metre, two-bedroom flat advertises rental income of R6,000, while the bond on the property is estimated at R4,000 a month.
As more properties like this sell, the area's average sale price has dropped below R1 million. Records from the Western Cape Deeds Office show 106 sales in Paarl Rural at an average sale price of R939,000, and one home asking R900,000 is currently under offer. In greater Paarl, the average sale price is about R2.3 million.
The six sectional titles sold in Paarl Rural this year averaged R189,847, with many in Vlakkeland, an affordable housing estate, where rents typically start at R5,000. The 74 freestanding properties sold averaged R910,000, and 18 properties have changed hands over the past two months.
Paarl is about 50 minutes from Cape Town's city centre without traffic, and the commute can stretch to 90 minutes at peak times, while a train route connects the town to the city centre and the northern suburbs. The suburb has become popular with buyers seeking value for money away from Cape Town's ever-increasing property prices.