Luxury mar­ket is re­gain­ing its shine

Weekend Argus (Saturday Edition) - - PROPERTY360 -

THE luxury prop­erty mar­ket faced some chal­lenges in 2018, but Cape Town re­mains one of the cities still at­tract­ing in­ter­na­tional in­vestors look­ing for luxury real es­tate.

This is backed up by the Wealth-X Global Prop­erty Hand­book which shows that Cape Town ranks 37th, or one below Dubai at 36th, says Denise Do­gon, chief ex­ec­u­tive of Do­gon Group Prop­er­ties.

“We be­lieve in 2019 the At­lantic Se­aboard and City Bowl ar­eas are go­ing to of­fer the prop­erty in­vestor in­ter­est­ing op­por­tu­ni­ties which will be hard to pass up. With the slug­gish rand, and pres­sure in the lo­cal mar­ket, luxury prop­er­ties will also seem in­creas­ingly at­trac­tive to over­seas in­vestors in terms of the dis­counts to be had from se­ri­ous sell­ers.”

The Camps Bay/Bakoven area is one of the most de­sir­able ad­dresses in Cape Town, says Devin de Moy­land, area spe­cial­ist for Chas Everitt Luxury Port­fo­lio, and since July last year, there has been an in­crease in prop­erty sales in these ex­clu­sive At­lantic se­aboard suburbs.

“Ear­lier in the year, buy­ers were hes­i­tant due to ex­treme wa­ter re­stric­tions in Cape Town and uncer­tainty over the gov­ern­ment’s land ex­pro­pri­a­tion plans. But then we had good win­ter rains, the land fears sub­sided, and things be­gan to turn around for prop­erty sell­ers here.

“We saw as­tute in­vestors start­ing to move in and buy up prop­er­ties, in­clud­ing some that had been on the mar­ket for many months, in an­tic­i­pa­tion of a rise in prices as the sup­ply of homes for sale dwin­dled and the an­nual sea­sonal in­flux of in­ter­na­tional buy­ers gained mo­men­tum.”

De Moy­land says the num­ber of sales in Camps Bay and Bakoven is “never very high” as there are only about 2 400 free­hold and sec­tional ti­tle homes there in to­tal, and min­i­mal space for new devel­op­ment.

Ex­ist­ing own­ers also tend to sell re­luc­tantly.

Lo­cal renters may also be able to ex­pe­ri­ence luxury liv­ing in the cur­rent eco­nomic cli­mate, say Se­eff agents Vivien Adler and Bar­bra-Ann Briner.

With the pres­sure on the prop­erty mar­ket in the Cape and many new devel­op­ments, the rental rates in the luxury sec­tor of the At­lantic Se­aboard are down by about 25% and there is cur­rently a sur­plus of stock on the mar­ket.

There has never been a bet­ter time to rent here. Rental rates cur­rently av­er­age at around R20 000 to R40 000 a month for a two-bed­roomed apart­ment in new devel­op­ments while houses and vil­las are in the R50 000 to R120 000 a month range depend­ing on the lo­ca­tion, size and qual­ity.

Adler says the con­ve­nience and “fab­u­lous life­style” of the At­lantic Se­aboard is a big at­trac­tion and there is usu­ally high de­mand for rental ac­com­mo­da­tion. Fur­ther­more, many peo­ple hold­ing back on buy­ing right now may choose to rent.

LUXURY LIV­INGProp­er­ties such as this one in Fres­naye at­tract monthly rentals of around R70 000.

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