A gem in Clifton for R70m

A rare piece of va­cant land is on the mar­ket in SA’s most de­sir­able res­i­den­tial area

Weekend Argus (Saturday Edition) - - PROPERTY - SATUR­DAY

ti­tle com­plexes.

“Buy­ers of­ten pay mil­lions for older homes to se­cure a good lo­ca­tion and then re­de­velop or de­mol­ish and build their dream homes. Even garages can sell for up to R2.5m.

“This par­tic­u­lar site for sale oc­cu­pies a prime lo­ca­tion with sea views. It con­sists of three plots, of 525m², 643m² and 1 333m² and slopes from Kloof Road down to Vic­to­ria Road.

“The back plot on Kloof Road is land­locked, ac­ces­si­ble only by means of a fu­nic­u­lar from Kloof Road or from Biskop Steps. To un­lock its value, it is linked to the other two sites, en­abling the owner to cre­ate park­ing and ac­cess from Vic­to­ria Road.”

Co­hen says the site is ideal for a large sec­tional ti­tle de­vel­op­ment. There is a con­stant de­mand for flats in the area and lit­tle stock on of­fer, AN EX­CEP­TION­ALLY rare tract of land of around 2 500m² is for sale in Clifton, priced at R70 mil­lion (R28 000/m²), in­clud­ing VAT.

Land is at an ab­so­lute pre­mium in the sub­urb, says Seeff ’s lux­ury mar­ket spe­cial­ist, Lance Co­hen.

“There is al­most no land avail­able in Clifton, Bantry Bay, Fres­naye and Camps Bay – and, cer­tainly noth­ing of this size or lo­ca­tion in Clifton,” he says.

In the past three years, for ex­am­ple, va­cant land sales across all At­lantic seaboard sub­urbs have ac­counted for only 26 or 1 per­cent of prop­erty sales for the com­pany. The sales added up to R170m.

When a rare piece of land does come on to the mar­ket, it is snapped up quite quickly, says Co­hen, who re­cently sold a 1 242m² plot in Net­tle­ton Road, Clifton, for R35m (R28 180/m²).

He also sold a bungalow on a 178m² plot for R17m, to a buyer who wants the lo­ca­tion and in­tends to de­mol­ish the bungalow and build a beach house.

Clifton is widely re­garded as the most valu­able strip of res­i­den­tial real es­tate in the coun­try, with an av­er­age price of about R17.5m. Most prop­er­ties in the sub­urbs are flats or houses on rel­a­tively small plots com­pared with Bish­op­scourt and Con­stan­tia, for ex­am­ple.

The value of prop­erty here is de­ter­mined largely by the scarcity of land, the lo­ca­tion and the views, so prop­erty val­ues con­tinue to ap­pre­ci­ate each year, says Co­hen.

“Be­fore the 2007/8 down­turn, for ex­am­ple, the av­er­age price in the sub­urb was about R9.8m. Since then and, de­spite the sub­dued eco­nomic cli­mate, it has more than dou­bled.

“The coun­try’s sec­ond- most ex­pen­sive sub­urb is Sand­hurst, which bor­ders the Sand­ton cen­tral busi­ness dis­trict – now rated the most ex­pen­sive square mile on the con­ti­nent – and the av­er­age house price there is R13.9m.

“Homes in Sand­hurst are on large plots of 4 000m² to 7 500m², whereas Clifton homes are mostly on much smaller plots of around 700m².”

This put the av­er­age price dif­fer­ence into per­spec­tive and un­der­lined the value of prop­erty in the sub­urb.

Clifton com­prised only 230 free­hold prop­er­ties and 422 sec­tional so buy­ers are pre­pared to pay a pre­mium for lux­ury flats here. On the sea­side drop of Vic­to­ria Road, for ex­am­ple, a 385m ² flat went for R45m (R116 883/m2). The site could also ap­peal to pri­vate buy­ers who want to build a lux­ury home.

“Pos­si­bly the most ap­peal­ing op­tion would be for a buyer to build a small, lux­ury, sec­tional ti­tle de­vel­op­ment with three to five units and oc­cupy one of th­ese.

“A key ad­van­tage of this is that the buyer as de­vel­oper could claim the VAT re­lat­ing to var­i­ous stages from the South African Rev­enue Ser­vice – from the ac­qui­si­tion price to the de­vel­op­ment costs.

“The profit on the sale of the other units would sig­nif­i­cantly re­duce the de­vel­op­ment cost. The buyer would then own a mag­nif­i­cent Clifton home with the po­ten­tial for sig­nif­i­cant growth in value.”

PRIME PO­SI­TION: An aerial view of the lo­ca­tion of va­cant land that is for sale for R70m in Clifton.

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