A year after launching its first regional office in the area, Jawitz Properties continues to gain ground in the Winelands region of the Western Cape, with a move to new office premises and a growing agent network marking the next growth phase on the journey to capturing double-digit market share in the area.
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“In just 12 months, the team has built a strong presence in the region and is on track to secure 10% of the local sales and rental market by the end of 2024,” states Jawitz Properties Paarl Franchise Owner, Johan Barkenhuizen.
The regional office serves the broader Paarl, Franschhoek and Wellington area, ensuring a diverse property mix to meet the various needs of buyers and renters who are looking to call the Winelands region home.
“The semigration trend from Gauteng to the Western Cape, particularly by families looking to send their children to one of the many top-rated schools in the area, is the major driver behind the sustained boom in property sales,” explains Barkenhuizen.
Young families
According to stats shared by Barkenhuizen, young families make up a significant proportion of buyers, with 26.3% of new homebuyers in the region under the age of 35, with the majority (62%) in the 36-64 years age bracket.
The Paarl school catchment area boasts over 50 schools, including some of the best primary and high schools in the country, such as Paarl Gymnasium, Paarl Boys, Paarl Girls, La Rochelle, Labori, Hugenote and Boland Landbou.
“Schooling is a major drawcard to the area, with properties located in close proximity to these educational institutions in high demand and selling at a premium,” continues Barkenhuizen.
The landscape, over 300 registered wine farms in the area, the outdoor lifestyle, the slower pace of life in the area, and the close proximity to the Atlantic seaboard are additional draw cards attracting local and international buyers from across a broad spectrum of income bands.
“The Cape Town Mayor recently stated that the provincial government is preparing the broader Cape Town region to support an additional 1.5 million people with a focus on infrastructure upgrades, including an extensive road improvement project in the Cape Winelands currently underway,” adds Barkenhuizen.
These infrastructure upgrades also include the development of the international Cape Winelands Airport located 25km from Paarl to feed the area, which is due for completion in 2028.
“These investments in the region will support nominal house price growth, with the added high demand, low supply drivers adding further impetus to the prices sellers are realising,” believes Barkenhuizen.
While Paarl offers a huge variety of properties, Barkenhuizen says that Wellington is seen as a more rural area offering homes priced from R2.2 million and above.
“Franschhoek caters to a more specific market, with limited stock and average prices between R8,5m and R12m, attracting high-end buyers, with many foreigners using the region as a summer home.”
New developments
Newer developments are currently underway that will introduce additional supply while adding to the numerous prestigious established estates that are already big attractions.
“The area already boasts two world-class estates in Val De Vie and Pearl Valley, which are renowned globally, with additional developments currently under construction,” says Barkenhuizen.
Barkenhuizen identifies seven new development projects underway that will add an additional 1,200 houses in the mid to upper R4,5m-R8,5m price range, with an additional two developments under construction in the area that will offer 220 houses in the under R3.5m price bracket.
“At the very top end, there are wine farms that typically sell for over R100 million, mainly to foreign buyers, with entry-level housing with an average price of R850,000 in Paarl East catering to the lower end of the market,” explains Barkenhuizen.
Diverse property
The diverse property mix caters to a wide range of buyers and makes the wider Paarl, Franschhoek and Wellington region a great place to invest for growth.
“The mid-market has delivered 12.5% annualised returns, which are expected to climb following the positive election outcome and the improved global and local economic outlook,” continues Barkenhuizen.
“The well-run municipality delivers reliable services, and conducts regular proactive maintenance, and has embraced a very pro-business approach,” he elaborates.
“As a relative newcomer to the area, we have already had numerous positive engagements with the local business chamber and municipality, who collaborate with business owners interested in moving to the area.”
The local culture of supporting local businesses is another prolific opportunity for companies looking to relocate.
“As a family-run business, this community-led ethos resonates with the Jawitz brand. We are excited to help more families find homes in this extraordinarily beautiful part of the world while continuing to do our part for the local community through our involvement in numerous upliftment and social investment projects,” he concludes. “One such project is our Shoes for Schools initiative, where we already supplied over 500 pairs of shoes to schools in the past six months.”
