Af­ford­able At­lantic sea­side apart­ments are in short sup­ply

Weekend Argus (Saturday Edition) - - PROPERTY -

THERE is a re­newed sense of ur­gency among buy­ers look­ing for af­ford­able sea­side flats priced be­low R3 mil­lion near the city’s top beaches, say Se­eff ’s agents on the At­lantic seaboard and in the Blou­berg area.

“From an over­sup­ply over the past few years, we have seen a dra­matic shift with a mas­sive stock short­age now ev­i­dent,” says Se­eff ’s At­lantic seaboard man­ag­ing di­rec­tor, Ian Slot.

“Our fig­ures for the first half of the year also show about 60 buy­ers on aver­age a s how­house, c o mpared t o 41 dur­ing the same pe­riod last year,” he says.

At­lantic seaboard agents Hi­lary Bic­cari and Bianca Gutteridge say that, dur­ing the first five months of this year, about 124 flats worth al­most R185m were sold in the sea­side sub­urbs that stretch from Mouille Point through to Green Point, Sea Point, Bantry Bay and Fres­naye.

“Th­ese fig­ures ex­clude sales at the V&A Wa­ter­front and in Clifton and Camps Bay. Most notably, we have no­ticed a nar­row­ing of the gap be­tween listed and sale prices from just un­der 10 per­cent over the last three years to around 7.7 per­cent due to strong de­mand and more re­al­is­tic pric­ing.”

Bic­cari and Gutteridge say that apart­ments are sell­ing al­most as fast they can list them.

“Some of our most re­cent sales in Sea Point il­lus­trate the de­mand. We listed a one-bed­roomed gar­den apart­ment in Le Vil­lage on a Tues­day and closed a cash of­fer for R1.05m by the Fri­day. An older, threeb e d r o o med apar t ment i n Twelve Lon­don Road, also listed on the Tues­day, was sold on the Satur­day for R1.9m fol­low­ing about 26 en­quiries for the apart­ment. An apart­ment in Nor­man­dale was sold for the full listed price of R2.2m to the first buyer that viewed it be­fore we even had a change to list it.

“Buy­ers have been a mix of own-use and buy-to-let in­vestors, as there is strong de­mand for rental apart­ments in the area, es­pe­cially in Sea Point and in Green Point.”

Se­eff ’s Blou­berg area prin­ci­pal, Wouter Pentz, re­ports sim­i­lar con­di­tions in his area.

“In the first four months of this year, about 81 apart­ments worth more than R85m have been sold on the sea side of the R27 West Coast Road. This is about 27 per­cent more than the roughly 64 units that were sold dur­ing the first four months of last year.

“Here, too, a se­vere short­age of well- priced apart­ments be­low R3m re­mains a chal­lenge for agents. The strong de­mand has also re­sulted in a nar­row­ing of the gap be­tween listed and sale prices for apart­ments to be­tween 5 per­cent in the West Beach and Blou­bergsands ar­eas to around 9 per­cent in Blou­bergstrand. The gap is still some­what above 12 per­cent in Big Bay, largely be­cause apart­ments there are more ex­pen­sive,” says Pentz.

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