May sec­tional ti­tle prop­erty sales con­tinue up­ward trend

Weekend Argus (Saturday Edition) - - PROPERTY -

PAM GOLD­ING Prop­er­ties’ Wa­ter­front and Mouille Point area agents have sold six flats worth a to­tal R56 mil­lion in the V&A Wa­ter­front and Mouille Point in May.

Of three Wa­ter­front trans­ac­tions, one 188m two-bed­room flats with two bath­rooms and yacht basin and moun­tain views was sold for R15m to a UK buyer. The other flats were sold to a Cape Town buyer in­vest­ing for R12.5m and a Knysna res­i­dent for R9m.

Of three Mouille Point prop­erty sales, two flats in the South Seas beach­front block were sold for R9.825m and R8.33m to buy­ers from Namibia and Worces­ter.

“Over the past decade prices of sec­tional ti­tle prop­er­ties have risen by 151.6 per­cent in Mouille Point to a me­dian price of R3.12m in 2015, and by 133.8 per­cent in the V& A Wa­ter­front to a me­dian price of R9m,” say agents Kim Bai­ley, Paul Levy and Mariel Burger.

“In com­par­i­son, the con­sumer price in­dex for the same pe­riod in­creased by 80.9 per­cent.

“Hous­ing sup­ply in the Cape is limited by ge­og­ra­phy, and de­mand is fu­elled by re­peat buy­ers mov­ing into the re­gion from other prov­inces, so prop­er­ties in Cape Town en­joy a high price pre­mium rel­a­tive to other ma­jor metro ar­eas.

“Buy­ers be­lieve a prime prop­erty in a sought-after lo­ca­tion like the At­lantic seaboard en­ables them to hold an ex­cel­lent in­vest­ment which they can en­joy at the same time. The ex­traor­di­nar­ily favourable ex­change rate also makes liv­ing in the coun­try ex­tremely af­ford­able for for­eign­ers.

“It’s no sur­prise that stock lev­els are low and when prop­erty comes on the mar­ket, many buy­ers pay the list­ing prices,” say the agents.

Ac­cord­ing to PropS­tats, 12 sec­tional ti­tle units were sold in the V&A Wa­ter­front dur­ing the first four months of the year. This year’s me­dian price for these prop­er­ties was R9.8m and of the 12 sales recorded, four were sold at the full list­ing price.

The sell­ing price of Wa­ter­front flats dur­ing this pe­riod was only 1.9 per­cent be­low the list­ing price. This com­pares to a na­tional av­er­age of 8 per­cent be­low list­ing price dur­ing the first quar­ter, ac­cord­ing to the FNB Es­tate Agent Sur­vey.

The av­er­age price a square me­tre of the 12 prop­er­ties sold dur­ing the first four months of the year was R80 000/m – an in­crease of 30.6 per­cent on year- ear­lier lev­els, say the agents.

“Four flats were sold within one or two days of list­ing, while the me­dian num­ber of days listed was six weeks and five days. This com­pares favourably to the na­tional av­er­age which is es­ti­mated at 11 weeks and one day, ac­cord­ing to the FNB Es­tate Agent Sur­vey.”

Wa­ter­front buy­ers were mainly in the ma­ture cat­e­gory – 50 to 64 years. The largest

‘Hous­ing sup­ply

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