Demand in Higgovale is still larger than properties available

DEMAND for accommodation in the small exclusive suburb of Higgovale continues to outstrip supply, according to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty.

The suburb is below Lion’s Head south of Camps Bay Drive and is bordered by Camps Bay to the west and Oranjezicht to the east. Its position allows most homes magnificent views of the city, Table Mountain and Devil’s Peak.

“Although there are several gated security complexes, property in Higgovale mainly consist of large houses with elegant architecture and sophisticated interior design. Because of the steep incline, many are multistorey properties hugging the slope,” says Geffen.

“House sales in the City Bowl as a whole have gone from strength to strength following the bumper season in 2007 before the global recession, wh e n 2 6 1 h o u s e s wo r t h R894 million were sold.

“During 2013, 235 properties were sold for a total R1.185 billion, and the average house price improved from R3.4m in 2007 to R5.043m.

“Pending final transfers from last year being concluded, 2014 could end up being even better than 2013 if you consider that from January till the end July 129 properties worth R700m were sold and registered with the deeds office.

“Since the beginning of 2013, 15 Higgovale properties were sold for more than R143m, at an average of R9.5m. Oranjezicht has the second highest average in the City Bowl of R6.2m.”

During the first half of last year the highest sale recorded in Higgovale was in Glen Crescent when a property was sold for R26.5m. This is the highest price ever paid for a property in Higgovale.

According to agent Jayson Sprawson, return on investment is where Higgovale shows its muscle.

“Because of its position at the foot of Table Mountain, its architectural styles, proximity to the CBD and pleasant surrounds people are prepared to pay a premium to live in Higgovale. That’s why the suburb has an average nominal return on investment of 19 percent a year over five years, measured during 2013 and last year.

“The area average is 15 percent over eight years, and the only problem we have is securing sales stock,” says Sprawson.

He predicts that flats in the City Bowl are probably heading for another record year.

“Although it has the smallest apartment portfolio in the City Bowl, the average price of sectional title units in Higgovale during the first half of 2014 was R6.7m, whereas the average price of other city bowl apartments was around R1.5m.

“During the first half of 2014 the highest price paid for an apartment in Higgovale was R9.5m. A 105m² apartment in Hi g g o Oaks was s o l d f o r R3.2m,” says Sprawson.