Ask­ing prices breach R100m

Financial Mail - Investors Monthly - - Opening Bell -

It’s no longer unusual for big-ticket prop­er­ties on Cape Town’s smart At­lantic Seaboard to come with price tags of R100m or more.

Be­sides the sale of an uber-lux­ury Bantry Bay house to a Ger­man cou­ple last month for R290m — the high­est price ever paid for a house in SA — at least four Fres­naye and Clifton prop­er­ties are on the mar­ket with ask­ing prices top­ping R100m, says Se­eff lux­ury mar­ket spe­cial­ist Lance Cohen.

He notes that the mini-boom of 2013-2015 pushed val­ues and con­fi­dence at the top end of the mar­ket to a new level. In­vestors are so con­fi­dent that a villa in Clifton’s Net­tle­ton Road that was sold early last year for R111m is now back on the mar­ket for R150m.

Cohen says homes in this price bracket typ­i­cally boast world-class ar­chi­tec­tural de­sign, mag­nif­i­cent sea views, well over 1,000 m² of floor space and just about ev­ery lux­ury that one can imag­ine.

He refers to a Fres­naye list­ing at R125m, a mul­ti­storey villa that tow­ers above the ocean, and com­pares it with Hol­ly­wood celebrity-style homes.

It in­cludes, among other things, a hi-tech cinema, bar room, sev­eral liv­ing ar­eas, sea-fac­ing ter­races and a mag­nif­i­cent rim-flow swim­ming pool (pic­tured above).

How­ever, de­spite the rise of the At­lantic Seaboard’s R100m-plus homes, lat­est fig­ures from the PropS­tats data­base show that the av­er­age sales price in the area for the first half of 2016 stands at R13.1m (this ex­cludes the re­cent R290m sale).

It rep­re­sents an in­crease of close to 10% (or R1.1m) year on year for the area.

In Fres­naye, for ex­am­ple, more than 80% of sales in the year to date were be­low R15m, and al­most half of all th­ese sales were con­cluded within a month of list­ing.

More­over, the R5m-R10m price band still re­mains the busiest sec­tor by far, ac­count­ing for al­most half of all sales achieved on this stretch of coast­line in the year to date. About 40 units sold at an av­er­age price of about R8m, com­pared with R7.6m dur­ing the same pe­riod last year. The bulk of th­ese sales have been in Fres­naye and Camps Bay.

The next price band, the R10m-R20m range, ac­counts for about 30% of all sales on the At­lantic Seaboard so far this year at an av­er­age price of R13.5m.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.