While the suburb of Waterkloof in the old east of Pretoria is often thought to be home to an older generation, its face is slowly changing.
According to Charné Spangenberg, property consultant: Harcourts Waterkloof and Brooklyn, 40% of recent buyers were aged 18–35, followed closely by 36- to 49-year-olds who made up 38% of recent buyers. This may be because of the investment attraction of the homes in the suburb.
“The rental returns are much higher in Waterkloof than in neighbouring suburbs because of all the embassies, high commissions and consular sections,” she says, noting that the average rental income for a four-bedroom property in the R3m–R5m bracket is between R20,000 and R35,000/month, representing an average rental return of 8,25% a year. “A rental income of up to R75,000/month is achievable by properties in the R5m–R10m bracket.”
Waterkloof property prices have risen steadily by more than 35% since 2009, while the average sales price has increased by almost 20% as compared with the same period in 2013. This growth has translated into high demand for property, some of the city’s most expensive.
About 100 properties a year are transferred in Waterkloof,
says Gerhard van der Linde, MD: Seeff Pretoria East. “Upwards of 80% are full-title properties, with the balance being sectional title. Price ranges for full-title properties include an average selling price of slightly less than R4m, with the highest demand in the R3m–R5m price range.”
Owing to a lack of sectional-title supply, and with prices averaging just below R2m, buyers range from individuals to developers looking to demolish and subdivide.
“Waterkloof is an old, established suburb, with significant renovations and additions taking place on existing properties,” says Van der Linde. “In some instances, older houses are bought with the intention of demolition and the building of new houses in their place. The adjacent areas of Waterkloof Ridge and Waterkloof Park still have vacant land available, which is highly sought after by developers, and a number of green developments are on the radar.”
Stienie van den Berg, area agent: Pam Golding Properties, sums up the suburb: “Waterkloof was one of the first security estates to be developed within the Tshwane municipal area. It is therefore well established and an aspirational suburb.”
This article originally appeared in Neighbourhood, Sunday Times.
