Discover effortless modern living and outstanding rental potential in this unfurnished 1-bedroom, 2-bathroom apartment in iconic "The Paragon" – one of Observatory’s most desirable secure developments.
Apartment Highlights
Spacious open-plan living, dining, and kitchen with modern finishes, sleek cabinetry, and quality appliances.
Generous bedroom with excellent natural light and built-in storage.
Two full modern bathrooms (shower, toilet & basin in each).
Contemporary neutral interiors — low-maintenance and immediately tenant-ready.
Secure basement parking on Level 2.
Premium Building Amenities (included in levies)
Rooftop swimming pool and undercover braai deck with panoramic views.
Fully equipped communal gym.
Communal laundry facilities.
24-hour security, access control, reception, elevator access, and beautifully maintained common areas.
Prime Observatory Location – UCT & Medical Hub
Corner of Main Road and Bowden Road, in the heart of vibrant Observatory (“Obz”).. Steps from the train station, trendy cafés, restaurants, and shops. Minutes from UCT, Groote Schuur Hospital, and UCT Private Academic Hospital. Observatory’s creative energy and chronic shortage of quality student/staff accommodation create perpetual rental demand from UCT students, academics, medical professionals, and young professionals.
Investment Performance – Outstanding Returns with Dual Income Options
Example for Investors (illustrative):
Long-term rental (current market)
Monthly rental income: R16,500 (conservative, market-aligned).
Gross annual income: R198,000
Gross rental yield: 10.10%
Net monthly cash flow (after rates & levies): R13,292
Net rental yield: ≈ 8.14%
Note: A special levy of R918 per month applies for 3 months only, commencing 1 May 2026.
Observatory consistently ranks as one of Cape Town’s highest-yielding suburbs (often 9–10%+ gross for 1–2 bed apartments), significantly stronger than:
Sea Point / Atlantic Seaboard (typically 6–8%)
Rondebosch / Newlands (usually 7–8.5%)
Many CBD or Green Point properties
Airbnb / Short-Term Rental Upside
The Paragon is Airbnb-friendly, with units in the building successfully operating on short-term platforms. The rooftop pool, gym, secure parking, and prime location near UCT and the City Bowl support strong demand. Short-term letting can significantly boost returns (often 10–15%+ gross yields in Observatory when managed well), making this a flexible, high-performance asset for investors.
Conservative 2026 projections:
Average nightly rate: R1,050–R1,200
(R1,000–R1,485/night and city-wide ADR of ~R1,719)
Realistic occupancy: 65–71%
Projected gross annual revenue: R260,000 – R310,000+
Gross short-term yield: 13.3% – 15.9%
Total Expected Annual Return (Rental Yield + Capital Growth)
Observatory has delivered consistent capital growth of 6–9% p.a. in recent years, with 2026 forecasts in the 5–8% range for well-located properties. Combining this with the strong rental yield gives a projected total gross return of approximately 15–18% p.a. (rental income + capital appreciation). Capital growth is not guaranteed and will vary with market conditions.
Why This Property Stands Out
Excellent 10.1% gross long-term yield + 13–16% gross Airbnb upside + solid capital growth.
Low vacancy risk due to UCT housing shortages and medical sector demand.
Flexible income strategy (long-term or short-term).
Modern, unfurnished, secure, and amenity-rich.
Unfurnished and ready for your personal style or immediate rental income.
Contact us today for a private viewing, detailed financial projections, or to discuss your investment goals.
Bailey. Real Estate – Your trusted partner in Cape Town property.
Exclusive Sole Mandate: marketed by Bailey. Real Estate.
