Still fetching top dollar
Cape Town’s housing market has started to slow, in line with those of other major metros, as affordability and water-shortage issues force many would-be buyers to put investment decisions on hold.
However, the Atlantic seaboard, arguably Africa’s swankiest stretch of real estate, is still notching up record prices. A luxury abode situated high on the slopes of Lion’s Head in Clifton recently sold for a staggering R120m. The sale was clinched by the Dogon Group, which was also responsible for the record-breaking 2016 sale of a Bantry Bay home for R290m.
Sea Point — traditionally more affordable than neighbouring Bantry Bay and Clifton — can also boast a few record sales in the year to date. In early March, a fourbedroom beach-front penthouse apartment fetched R32m, the highest price achieved for a sectional title property in Sea Point.
Malka Zinman, sectional title area specialist for Lew Geffen Sotheby’s International Realty, says the penthouse was sold within 24 hours of going to market. “Convenience is one of the key reasons for the Sea Point beach front’s resurgence as one of the most sought-after areas on the Atlantic seaboard,” says Zinman. “The area offers an array of shops and restaurants, as well as the promenade and beaches.”
Meanwhile, figures from FNB show that house price growth in Cape Town slowed to 10.8% year on year in the fourth quarter, down from a peak of 15.7% in mid-2016.
FNB property strategist John Loos says Cape Town’s popularity among “semigrants” from other parts of SA appears to have dwindled somewhat. “We had anticipated this slowdown on the back of residential property affordability issues,” he says. “The region’s severe drought conditions may also be starting to dampen the sentiment of aspirant semigrants.”