V&A residential values buck negative trend

THE V&A Waterfront residential sector continues on an upward trajectory

Since the development on the canal was launched in 2000, the average sale price has increased from just R1.6 million to R10.83m by the end of last year – a remarkable return on investment of 576% which translates to a 36% year-onyear growth in value.

Richard Todd, of Lew Geffen Sotheby’s International Realty in the V&A Waterfront and Mouille Point, says: “In stark contrast to the national market which has largely succumbed to the flailing economy, the V&A Marina continues to enjoy steady growth in demand and property prices, with some of the most exclusive homes now commanding the highest rates per square metre in the country.”

Citing Propstats data, Todd says: “In 2012 there were 25 sales at an average sale price of R6.5m. This figure was bumped to R8.5m by a record sale of R55.5m for a four-bedroom penthouse at the One & Only, the only property which was sold for more than R20m.

“Two years later, 2014 ended on an average sale price of R10.7m with 43 properties changing hands, eight of which were sold for more than R20m.

“In 2015, when most of the markets were levelling off, the Waterfront was enjoying a record year with 38 homes bought at an average sale price of R11.47m.”

It appears that 2017 is set to be a bumper year for the Waterfront’s residential sector because so far 12 transactions have created a spike in average sale price, which has risen to R17.48m.

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says reasons for this include that the homes offer secure urban living in a serene setting, and are close to many blue chip companies that have moved into the area, as well as to the CBD’s economy.

There is also easy access to the shops, restaurants and attractions in the Waterfront, one of the most visited destinations in Africa. The residential precinct has benefited significantly from the ongoing migration of upcountry residents.

Todd says the marina, although a luxury residential area, offers a wide selection of properties in a broad price band.

“Apartments range in price from around R5m to over R60m, depending on position, size and features, although the homes on the front yacht basin are generally between 15% and 20% more expensive than the canal-facing apartments.”

Todd says the buyer demographic has changed considerably. Previously, most buyers were foreigners while today most recent buyers are locals.

Since its inception, the V&A Waterfront residential area has weathered two economic slumps with property values steadily rising.