De­mand for lux­ury keeps rais­ing price bar

Weekend Argus (Saturday Edition) - - PROPERTY -

DE­MAND is up for prop­er­ties in At­lantic seaboard sub­urbs such as Clifton, Bantry Bay, Fres­naye and Camps Bay, and th­ese ar­eas con­tinue to raise the price that buy­ers are pre­pared to pay for lux­ury homes, says Seeff agent, Lance Co­hen.

“Al­though the right ad­dress and panoramic sea views are given cri­te­ria and price is not a defin­ing fac­tor, it is note­wor­thy that tro­phy homes are in­creas­ingly fetch­ing prices of R20 mil­lion to R30m and are now breach­ing the R100m bar­rier,” he says.

“This year, 201 prop­er­ties worth al­most R1.7 bil­lion were sold in th­ese four sub­urbs alone. Dur­ing the same pe­riod last year, 178 prop­erty sales worth just over R1.5bn were recorded,” says Seeff At­lantic seaboard man­ag­ing di­rec­tor, Ian Slot.

“About eight prop­er­ties were priced above R30m com­pared to six last year. Seeff ’s sales in th­ese sub­urbs alone al­ready top R600m with lux­ury prop­erty sales in­clud­ing a villa in Head Road, Fres­naye that was sold for R26m, a Clifton villa that was sold for R24m, an Even­tide apart­ment in Clifton that went for R45m, a four-bed­roomed villa in Net­tle­ton Road, Clifton that was sold for R31.5m and a 1 200m va­cant plot in the same road that was sold for R35m.”

S l o t s ay s t h e At l a n t i c seaboard at­tracts wealthy lo­cals, and is in­creas­ingly seen as a safe haven for wealthy prop­erty buy­ers.

“Around 96 prop­er­ties worth al­most R784m were sold to for­eign­ers, and al­most 10 per­cent of for­eign buy­ing is now at­trib- utable to buy­ers from African coun­tries such as Nige­ria, Namibia, Mozam­bique, Zam­bia and Zim­babwe,” he says.

“Since Seeff sold the first One&Only pent­house at just over R110m at the end of 2009, buy­ers have been pre­pared to pay over R40m and ever closer to R100m for a home here, de­spite the sub­dued eco­nomic cli­mate. This not­with­stand­ing, buy­ing ac­tiv­ity re­mains soft in the lux­ury mar­ket,” says Co­hen. “How­ever, av­er­age house prices here con­tinue to strengthen year-on-year. In 2005 for ex­am­ple, when ac­tiv­ity was at peak lev­els, the av­er­age price in Clifton was R9.8m, to­day it is a l most d o ubl e a t a r o und R17.5m. The av­er­age price in Bantry Bay has in­creased from R5.4m to R9.5m, has more than dou­bled in Fres­naye, from R3.6m to R7.4m, and Camps Bay homes now cost on av­er­age R7.6m; up from R4.9m in 2005.

“Va­cant land is ex­tremely scarce and can now sell for well above R9m for a plot. Based on land sales in the sub­urbs this year, rates range up­wards of R17 850/m to as much as R29 166/m for a plot in Clifton’s Net­tle­ton Road.”

Slot says that cap­i­tal growth re­turns have been re­mark­able since 2008. “Since 2009, sell­ers have achieved av­er­age in­vest­ment re­turns on re­sale of 14 to 15 per­cent based on a hold­ing pe­riod of just over six years. Al­though this is un­der­stand­ably some­what be­low the boom-pe­riod re­turns of around 30 per­cent, it is still sig­nif­i­cant.”

Al­though there is still plenty to buy in the R10m to R15m price range, the agents say this has been the most ac­tive price band here this year. In some of the most sought af­ter lo­ca­tions, such as Net­tle­ton Road, homes gen­er­ally cost R30m to R50m now.

Seeff is mar­ket­ing two lux­ury homes at around R100m each in Net­tle­ton Road, and in De Wet Road in Fres­naye, a new home is for sale at R59.95m.

This 1 300m four- storey home with four bed­rooms in­cor­po­rates the lat­est Ger­man and Aus­trian tech­nol­ogy and Euro­pean fin­ishes. Bio­met­ric se­cu­rity, mood light­ing, tem­per­a­ture con­trol, sound, and Wi- Fi are con­trolled at the touch of a but­ton. Other fea­tures in­clude a glass lift, float­ing bridges and walk­ways, a ver­ti­cal gar­den and two swim­ming pools.

EX­CLU­SIVE: This 1 300m2 Fres­naye house is for sale at R59.5m through Seeff.

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