Top year for At­lantic seaboard to keep sum­mer sell­ers busy

Weekend Argus (Saturday Edition) - - PROPERTY -

THE AT­LANTIC seaboard prop­erty mar­ket looks set to end the year on a stel­lar note and agents pre­dict a busy sum­mer for sell­ers.

This, de­spite the fact that this has largely been a year of con­sol­i­da­tion for the mar­ket with over­all vol­umes down year-on-year by about 20 per­cent on av­er­age, says Ian Slot, Seeff ’s man­ag­ing di­rec­tor for the area.

“So far, it has been yet another year of ex­cel­lent ac­tiv­ity for sell­ers, in terms of de­mand and prices with more higher value sales com­ing through com­pared to even last year when the mar­ket peaked,” says Slot.

“The At­lantic seaboard area that stretches from the V&A Ma­rina and Green Point near­est to the city to Camps Bay and Llan­dudno at the fur­thest point, just seems to re­tain its star qual­ity year in and year out, de­spite the eco­nomic chal­lenges.

“So we see for ex­am­ple that even though unit sales were down year- on- year, prices in­creased at well above in­fla­tion, by 13 per­cent to 22 per­cent. Over­all, we have seen a mar­ket this year packed with will­ing buy­ers keen to in­vest in the area. Con­di­tions have re­mained favourable for sell­ers and this is set to con­tinue into the busy sum­mer months and at least the first part of next year.”

Ac­cord­ing to Slot the mar- ket per­for­mance this year, although some­what down in unit terms, has de­liv­ered ex­cel­lent value with prop­er­ties still sell­ing al­most as fast as they are be­ing listed. By Novem­ber, about 565 prop­er­ties worth just over R4 bil­lion had been sold.

“The over­all av­er­age sales price was R7.2m com­pared to last year’s R5.8m, about 24 per­cent higher and an ex­tra R1.4m a sale on av­er­age,” says Slot.

“This year’s av­er­age sales price for free­hold prop­erty stands at about R12.1m com­pared to last year’s R10.7m, and R1.4m more a sale.”

He says sec­tional-ti­tle prop­er­ties have ex­pe­ri­enced even bet­ter price growth. The av­er­age sales price this year is about R5m, about 22 per­cent higher than last year’s av­er­age of R4.1m. That means about R1m more each on av­er­age.

“What is clear is that there seems to be no price too high and buy­ers are will­ing to pay an ever higher pre­mium for the right lo­ca­tion. This also ex­plains why we have seen more ac­tiv­ity in the R20m-plus sec­tor this year de­spite the over­all con­trac­tion of the mar­ket com­pared to last year’s peak.”

Although sec­tional- ti­tle prop­er­ties make up about 70 per­cent of the unit sales and free­hold houses just about 30 per­cent, Slot says that free­hold homes ac­count for al­most half of the value gen­er­ated this year, yield­ing sales of just over R2bn.

“There has been strong de­mand for free­hold houses in the Green Point area in par­tic­u­lar this year, pick­ing up about 27 sales at an av­er­age price of just un­der R6m com­pared to R5.2m last year. Just over half of all sales were above the R5m price band with R15.6m the high­est price paid this year.

“In neigh­bour­ing Sea Point, 17 free­hold houses were sold this year at an av­er­age price of R5.3m com­pared to R4.6m last year. Only six of these were above the R5m price band and the high­est price paid for a house in the sub­urb so far is R10m in Rhine Road,” says Slot.

Agents Jessica Rother and Deb­bie Kop­ing say the de­mand re­mains strong for houses in these two ar­eas and the av­er­age free­hold house price for both sub­urbs is up by about 15 per­cent year on year.

Camps Bay has come through with an ab­so­lute stel­lar per­for­mance this year ac­cord­ing to agents Pola and Nadine Jocum.

“Here, about 60 free­hold house were sold at an av­er­age price of al­most R12.4m. This in­cludes eight sales of homes above the R20m price mark, the most re­cent be­ing lux­ury vil­las in Glen Beach and Theresa Av­enue sold by Seeff to lo­cal cash buy­ers for R26m and R30m,” say the agents.

“It was the sub-R10m price sec­tor that picked up the bulk of ac­tiv­ity in past years, but this year the ta­bles have turned with more than half of all sales above R10m.”

Fres­naye ac­counts for about 31 of the free­hold houses sold at an av­er­age price of R13.6m. Ac­tiv­ity in­cludes three R20m­plus sales rang­ing to a high­est price of R56m. In Bantry Bay, about 12 free­hold houses were sold at an av­er­age price of R17.7m with half of all sales fall­ing above the R20m price band and rang­ing to a high­est price of R29m.

Although only five free­hold prop­er­ties were sold in Clifton, these have come at an av­er­age price of R34m and a high­est price of R111m, ac­cord­ing to agent Lance Co­hen.

“The ac­tiv­ity has paved the way for a few new top-class list­ings, although these are be­ing mar­keted on a con­fi­den­tial ba­sis. This in­cludes three lux­ury homes in Clifton, all with spec­tac­u­lar set­tings and sea views and lux­u­ri­ous liv­ing spa­ces with no ex­pense spared on fin­ishes. Prices range from around R150m to R200m,” says Co­hen.

“Cape Town ex­pects a busy tourist sea­son with lo­cals and for­eign­ers likely to take ad­van­tage of the weak rand to spend their hol­i­days in the city,” says Slot.

MA­JES­TIC: This lux­ury Camps Bay beach house was re­cently sold for R26 mil­lion.

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