Camps Bay and Bakoven house market buoyant

THE ADJACENT Atlantic seaboard suburbs of Camps Bay and Bakoven are enjoying a market high last experienced in 2007, showing exponential growth in rand value and number of sales.

“When t he market l ast peaked in 2007, 118 sales to the combined value of R775 million were recorded, with an average sale price of R6.5m and the most active segment of the market was the lower price band of R5m to R10m.

“The period measured from the beginning of 2010 to the end of last year reflects an impressive rand value growth of 134 percent in the combined market, increasing from R443.5m to R1.036 billion, with an average property value of R9.420m,” says Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic seaboard chief executive.

“This strong performance has continued into this year, with the first quarter seeing the sale of 24 houses with the combined value of R282.855m.”

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty says: “There was a notable upward shift in the market during this period, with houses in the R10m and R20m price band showing the highest growth in value as well as sales volume with a 200 percent increase in units sold.

“From the beginning of 2010 until the end of last year, freehold properties in this price range increased in value by just over 340 percent. During 2010 only 10 houses were sold, while during last year a total of 38 properties in this price band changed hands. This equates to a growth of 280 percent.

“The four-year period before and including 2010 produced 58 sales to the combined value of R885m, while during the four years from 2011 to 2014 a total of 87 sales took place to the combined value of R1.270 billion.”

Geffen says this translates to an excellent nominal return on investment across all price bands.

“With Bakoven now topping the list as the most expensive suburb on the rental market in South Africa, and Camps Bay boasting more than its fair share of trophy homes, the market i s moving steadily towards the big-ticket prices where buyers are willing to pay a premium for the best position and views.

“During the first quarter of this year, the four highest priced properties sold in the area realised a combined value of R91.15m. Three of the sales were in Camps Bay in The Cheviots Avenue ( R22.9m), Shanklin Crescent (R22.75m) and Medburn Road (R24m) and one house on Victoria Road in Bakoven was sold for R21.5m.”

Miller says: “Unlike most of its Atlantic seaboard neighbours, where the property landscape has altered significantly in recent years to include many modern sectional title developments, almost 70 percent of the properties in Camps Bay are still freehold, and houses that are priced correctly will generally move very quickly.”

Geffen says: “In terms of suburb performance, the luxury suburbs most comparable t o Camps Bay p e r f o r med equally well last year and the first quarter of 2015. The leader of the pack was Fresnaye, with 80 sales worth R1.089bn, followed by Camps Bay with 67 transactions realising R733m, Bakoven with 67 sales at R585m and in Bantry Bay there were 31 houses sold to the combined value of at R511m.

“Camps Bay is therefore considered to be a dynamic market and buyers are increasingly drawn by its prime locat i o n a nd r e l a xe d s e a s i d e lifestyle, with many snapping up these properties as second homes or for short-term holiday rentals which yield high returns,” says Geffen.