Voracious appetite for seafront apartments
Cashed buyers snapping up luxury V&A and Mouille Point units
SALES of luxury apartments at the V&A Waterfront and in Mouille Point increased by 44% last year, mainly from cash buyers, who accounted for more than 90% of purchasers. According to Lynn Pinn and Finella Botes, Seeff ’s team for the V&A Waterfront and Mouille Point, the prices of waterfront apartments across the Atlantic Seaboard continue to defy gravity, with buyers prepared to pay a premium for the right property.
According to Propstats, the total rand value of sales at the Waterfront last year was up 44% from 2016, and the combined value of Waterfront and Mouille Point sales was about R900 million.
The team enjoyed an excellent year, concluding R264m across these areas, achieving 34% market share at the Waterfront and 39% in Mouille Point.
Pinn and Botes said most buyers had been cash buyers, representing over 90% of their recent sales.
Apartments had been bought for a variety of reasons, ranging from buy-to-let investments to second and primary homes.
The team said the opening of the new Silo District at the V&A Waterfront had been a further boost for waterfront living despite the challenging economic environment last year.
The number of units sold in the area was down slightly from 39 in 2016 to 35 last year, but the total value was up 44% to R609 330 860 from R423 285 300 in 2016. The average selling price was R17.4m.
“This was driven largely by the desire for a luxury seaside location and a home that offers excellent convenience and a fabulous lifestyle. Despite the challenging economic conditions, these luxury apartments are still selling quite fast (within 30 to 60 days on average) and for close to, or at, their full asking price if they are correctly priced,” said Pinn and Botes.
The team said a Seeff analysis of Lightstone and Propstats data for the third quarter of last year showed an upward trend in the selling rate, with Canal apartments selling for R82 per 698m2 on average, 16% up year-on-year and 132% up since 2012.
“This is one of the highest rates even by Atlantic Seaboard standards and clearly illustrates the outstanding investment proposition on offer. At the Front Yacht Basin (FYB), the selling rate stands at around R95 per 122m2, 10% up year-on,” said the agents.
“Canal apartment sales still dominate, comprising 60% of all activity for the year at the V&A Marina, but it is notable that the price band differential between Canal and FYB apartments has closed from 21% in 2016 to just 15%,” said the agents.
They said waterfront apartments at the V&A, Silo District and in Mouille Point now ranked among the most-sought property investments in the country.