"Over the last few years we have also seen retirees who had settled in the grand old art deco apartments begin to sell, with their buyers representing the new urban classes of Johannesburg — young professionals, couples, renovators and investors of all races. These buyers are once again changing the nature of this quiet neighbourhood, rejuvenating it and creating a new urban vibrancy."

She says Killarney is a historic neighbourhood that is embracing urban living without spoiling its unique architecture and established amenities. "This bodes well for the suburb?s future, providing great investment opportunities for all levels of investors," concludes Morreira.

Editor's thoughts: Prices in Killarney held up better than most other areas in South Africa, but does this fact make it a good buy in terms of investment potential? Not necessarily.

Irrespective of the innate qualities of an area, history teaches us that those areas that experienced the most severe price drops tended to also show the strongest rebound. In other words, the fact that prices held up so well might not bode well for home values in the short term.