Weekend Argus (Saturday Edition)
Buyers get great value on the West Coast
Blouberg beach apartments now brisk sellers, reaching prices of R36 000/m2
ALTHOUGH Blouberg is one of the most dynamic property markets of the Cape metro, the value on offer for buyers remains almost unparalleled for a beach side location, according to Wouter Pentz, Seeff ’s licensee for the area.
“We continue seeing buyers flock to the area, snapping up almost any well-priced unit and quite quickly too. Beachfront apartments and those within walking distance of the beaches have become so popular that almost half of all recent sales have been for very close to or even the full listing prices,” says Pentz.
“Although most of the apartments are still selling for under R1 million, we are beginning to see top prices for sought-after beachfront complexes reaching as much as R25 000/m in Sea Spray on the Table View side and R36 000/m at Eden on the Bay.”
He says apartment sales across the area that stretches from Milnerton to Melkbosstrand now account for about a quarter of all market activity. This year, 477 apartments worth just under R500m have already been sold across the area at an average price of just over R1m. The average price of beachfront apartments tend to be more in the R2m to R3m range.
“Well over 60 percent of all apartment sales still fall in the R400 000 to R1m price band,” says managing executive Clinton Martle. “This is despite the superb infrastructure and amenities including a number of top schools in the area.”
The agents say the wide selection of security complexes and value for money have been among the key drivers of demand in the area. These complexes are also popular with tenants, but rental units tend to be in short supply.
Parklands tends to be the most popular for budgetfriendly apartments, says Pentz. Here, some 147 units were sold this year at an average price of R580 000. All sales have been under R1m and the value is still excellent compared to most suburbs in the area. The average rate is still R7 500/ m to R9 500/ m . Although a few sales have reached up to R12 000/m to R13 000/m , but he says this is not common.
“Table View tends to offer mostly older complexes with the area above West Coast Road still selling for very affordable prices, although slightly higher than those of Parklands,” says Martle. This year, 92 apartments were sold across the suburb at an average of R938 565.
About half of all sales were below the R1m price mark, but apartments on the seaside, Waves Edge side of the suburb are now selling for considerably more with a number of sales breaching the R2m price mark. Prices of apartments close to or overlooking the beach have reached rates of R20 650/m to R29 907/m2.
Units were sold at around R1.275m for one-bedroom flats to R2.1m for two-bedroom units in the popular beachfront complex, Sea Spray. This complex offers excellent investment returns as it is one of the most popular for holiday rentals according to agents Samantha van Zyl and Brian May.
“The highest prices achieved on the beach front are R3m for a 134m unit with two bedrooms in Nautica and R3.2m for a 107m2 unit with two bedrooms in Dolphin Beach. Prices can range to about R5m for a 237m beachfront unit with three bedrooms, underfloor heating and direct beach access at Dolphin Beach,” says agent Wendy Coetzer.
In the newer suburb of Big Bay there were 47 sales this year at an average price of R1.65m or around R13 000/m to R18 000/m2.
Popular complexes include Seaside Village, a mixed-use development with retail facilities that includes a Woolworths food store as well as a Checkers along with clothing and décor and restaurants that overlook the sea. Apartments were sold for around R900 000 for one-bed- room units to R3.5m for a luxury three-bedroom unit with views.
Another popular option is Eden on the Bay, a mixed-use development designed in the style popular in the Greek islands. Here, some 12 sales have taken place this year at an average price of R1.97m. Onebedroom units were sold for around R1.15m to R1.35m and two two-bedroom units were sold for R3.5m and R3.925m.
“While apartments at Eden on the Bay are now selling for around R18 000/ m to R20 000/m2 on average, prices have reached R32 000/ m to R36 000/ m2 this year. Prices though range to just under R7m for a 268m2 duplex penthouse with three bedrooms and all white interiors. Even at this price, the value is excellent and well below that of beach apartments in areas such as Sea Point,” say agents Warren Kidney and Gary Tarantino.
“Dolphin Ridge, another popular Big Bay complex with sea views and within a short walk of the beach, has been another top choice for buyers this year with nine sales at an average price of R1.5m and a top price of R1.8m for a threebedroom unit.”
Pentz says West Beach is yet another area that offers excellent value in apartments. Here, 22 units have sold this year for around R800 000 for two bedrooms to R1.65m for three bedrooms. Average prices in the area now range from about R14 000/m to R18 000/m2.
Prices of luxury sea view apartments in the Bloubergrant area though can range to about R3m for three-bedroom units with modern finishes and lock-up garages.
“Even in Milnerton, there are still complexes where apartments still sell for around R1m, although units at the sought-after Royal Ascot developments have been sold for up to R1.35m for two bedrooms and an average rate of R14 214/m to R19 565/m2. In the Lagoon Beach area, apartments have fetched up to R1.8m.
“On average, about 50 apartments are sold across the area every month and there is always a shortage of stock,” says Martle. “Sellers are getting excellent prices and the turnaround time for sales tends to be quite quick, depending on the price range.
“Aside from the apartment complexes, there are a number of security estates in and around the beachfront area. Investors in these complexes have seen returns of 20 percent to 30 percent over the last year or so.
“Buyers now tend to come from all over the world with the demand for homes close to the beach, especially in security estates and apartment complexes on the rise,” says Pentz.