May sectional title property sales continue upward trend

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