At­lantic Seaboard sales con­tinue to buck the trends

At­lantic Seaboard buy­ers and sellers are as good as their real es­tate pro­fes­sion­als, writes Anna-marie Smith

Business Day - Home Front - - HOMEFRONT -

IF THE sale of Enigma Man­sion in Camps Bay, cur­rently on the mar­ket by lo­cal agents for R300m, reaches con­clu­sion any­where near the ask­ing price, it will be a his­toric first for the in­dus­try.

What drives whop­ping At­lantic Seaboard sales of this na­ture are teams of highly skilled and en­er­getic real es­tate spe­cial­ists. Work­ing be­hind the scenes, in all mar­ket con­di­tions, them­selves res­i­dents of this sought af­ter area, they hold a close ap­pre­ci­a­tion of their af­flu­ent clien­tele.

Pam Gold­ing Prop­er­ties At­lantic Seaboard Branch Man­ager Basil Mo­raitis, in re­lay­ing a mem­o­rable ca­reer ex­pe­ri­ence con­sid­ered a day well spent in the in­dus­try, il­lus­trates the value of cul­ti­vat­ing net­works. By an­swer­ing an early morn­ing call of duty on New Year’s Day, fol­low­ing de­cent cel­e­bra­tions of the night be­fore, Mo­raitis con­cluded the sale of a R36m Net­tle­ton Road prop­erty eight weeks later.

Re­peat busi­ness is an­other con­tribut­ing fac­tor to the success of area spe­cial­ists, who over time can sell the same prop­erty up to four and five times over. Re­flect­ing on the cap­i­tal ap­pre­ci­a­tion of prop­er­ties is Denise Do­gon of Do­gon Group Prop­er­ties. She says: “An ex­am­ple is an old house in Net­tle­ton Road, Clifton that was sold for R18m in 2006, resold for R32m in 2008, then resold for R37m in 2010 and is now on the mar­ket once again for R55m.”

Although prop­er­ties are sub- ject to in­di­vid­ual merit based on lo­ca­tion and build, and few re­peat per­for­mances of boom times, this ef­fec­tively il­lus­trates a cap­i­tal ap­pre­ci­a­tion of 205%, over six years.

Mauer­berger of Se­eff Prop­er­ties, who ear­lier this year con­cluded a R42m sale of a Fres­naye prop­erty, him­self a born and bred At­lantic Seaboard res­i­dent, says this life­style equips agents to achieve op­ti­mum cred­i­bil­ity when show­cas­ing ex­clu­sive prop­erty.

He says by meet­ing their psy­cho­log­i­cal needs agents are able to ex­tend su­pe­rior cus­tomer ser­vice that goes be­yond the his­tory of prop­er­ties and its past own­ers.

Ca­ter­ing for the needs of buy­ers along the At­lantic Seaboard also means sourc­ing high de­mand prod­ucts, such as apart­ments in the area al­ready top­ping R1,1bn this year, says Se­eff’s Ian Slot.

Slot says big-bud­get in­vestors are shop­ping for lux­ury apart­ments again, as il­lus­trated by the com­pany’s two big ticket cash sales at R23.5m and R21,5m re­spec­tively, both pur­chased by lo­cal buy­ers.

Con­firm­ing that prop­erty per­for­mances along the At­lantic Seaboard con­tinue to buck na­tional trends, was Pam Gold­ing Prop­erty Group CEO An­drew Gold­ing ear­lier this month. Gold­ing said: “The At­lantic Seaboard had its best month ever in the mid-win­ter month of Au­gust 2012, with Pam Gold­ing Prop­er­ties writ­ing sales to the value of over R170m with R145m al­ready con­firmed.”

Gold­ing said this area has seen brisk trade par­tic­u­larly un­der R3m by full and part-time res­i­dents and long-term in­vestors re-en­ter­ing the mar­ket.

Do­gon says she and her team have achieved an­other record price ear­lier this month, with the sale of a R65m Ste­fan An­toni de­signed home on the slopes of Lion’s Head. The ren­tal de­part­ment of Do­gon Group Prop­er­ties is also ex­pe­ri­enc­ing record rentals in­clud­ing the re­cent lease of a fourbed­room seafront apart­ment for R140,000/ month.

Slot says Camps Bay has at­tracted more lo­cal and for­eign buy­ers this year than neigh­bour­ing ar­eas such as Clifton, Bantry Bay and Fres­naye.

He says real es­tate val­ues here have grown sig­nif­i­cantly over the past decade with the av­er­age house price up from just R3,5m in 2004 to close on R7m. On the whole, he says sellers achieved an av­er­age cap­i­tal growth yield of 15% over a seven-year pe­riod, with ex­cep­tions of 24% over nine years, and 36% in five years. He says apart­ments are yield­ing an av­er­age growth rate of 12% and ren­tal in­come yields about a fur­ther 4% per an­num on top of the cap­i­tal growth.

With re­gards to the sale of Enigma Man­sion in The Glen, Fran­cois Venter of Jawitz Prop­er­ties con­firmed that Jawitz, Anne Porter Knight Frank and Lew Gef­fen Sotheby’s In­ter­na­tional Realty have of­fi­cially been man­dated to sell the prop­erty. He says in­ter­na­tional mar­ket­ing of the prop­erty is now ac­tive, and to date has at­tracted two of­fers, the lat­est for R235m from a Swiss buyer.

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