Sky-high prices prompt ‘feed­ing frenzy’ on Cape Town’s At­lantic seaboard

Weekend Argus (Saturday Edition) - - PROPERTY -

HYPE around the re­cent sale of a home in Nettleton Road in Clifton for R110 mil­lion and the list­ing of a Camps Bay prop­erty for R450m has sent sell­ers in the area into a frenzy, prompt­ing one to turn down a full price of­fer of R65 000/m² on his Clifton apart­ment and hike the price to R75 000/m².

That’s the word from Dennis Hamer, owner of the Har­courts At­lantic fran­chise, who says: “In this in­stance the seller’s ar­gu­ment is that there are only a hand­ful of units on the mar­ket in Clifton for less than R10m.

“He be­lieves he will achieve the higher price this sum­mer and that his ex­pec­ta­tions are not un­re­al­is­tic – and with only 269 sec­tional-ti­tle units in to­tal in Clifton, the mar­ket might just prove him right.”

Mean­while, he says, Har­courts At­lantic is mar­ket­ing a “bar­gain” prop­erty in Nettleton Road for R39m – a price that must be seen against land in the same street that is on the mar­ket for R55m.

“Prices here are be­ing driven by the ex­tremely lim­ited sup­ply of land be­tween moun­tain and sea – and the con­struc­tion of show­piece homes to ri­val those of other fa­mous coast­lines.

“Sim­i­larly in Camps Bay, where last year you could still find a solid home for around R7m, there are now re­ally very few full-ti­tle homes avail­able at un­der R10m, and de­vel­op­ers are keen to ac­quire those that do be­come avail­able for re­de­vel­op­ment into lux­ury sec­tional-ti­tle com­plexes with two to four units.”

Hamer says another il­lus­tra­tion of the mar­ket heat all along the At­lantic seaboard is the re­cent sale for R14.5m of a re­de­vel­op­ment plot in Green Point that was orig­i­nally listed at R10.5m.

“And even one- bed­room apart­ments in Sea Point and Green Point are now fre­quently sell­ing for more than R2m – which equates to R30 000/m². In fact, a 10-year-old apart­ment in Green Point was re­cently sold for R58 000/m².”

As for en­try-level prop­er­ties along this coast­line, he says, the most af­ford­able bach­e­lor apart­ments are now priced at around R1.2m in Sea Point and R4.5m in Clifton.

“In other parts of Cape Town the same money can buy a sub­stan­tial prop­erty, so clearly, buy­ers on the At­lantic seaboard are also will­ing to sac­ri­fice size for lo­ca­tion and life­style, and that is another fac­tor that con­tin­ues to put upward pres­sure on prices here.”

STUN­NING: This mod­ern home in Nettleton Road in Clifton is for sale at R39 mil­lion.

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