PROPERTY: Atlantic Seaboard Luxury Apartment Sales Top R1.2bn, Ave Price Up By 24% YOY
Recent Western Cape Business News
THE LUXURY apartment sector (R4.5m+) represents about 40% of the Atlantic Seaboard apartment market and sales for the year to July 2017, already top R1.2 billion with 97 units sold at an average price of R12.7 million. The average rate being 24% higher than last year (R10.3m, 2016) and 44% up in just five years (from R8.8m, 2012).
Ms Billy Rautenbach, Sales Director for Seeff Atlantic Seaboard, V and A Waterfront and City Bowl says that less than half of all sales (45%) this year, are below R10m. Notably, some 14 sales have been concluded in the super luxury R20m-plus sector. This includes 4 in Clifton ranging to R40m (Clifton Terraces) and R80m (The Beaches), 6 at the Waterfront ranging to R40m (Juliette) and 1 in Mouille Point at R24m (Two Oceans Beach).
That said, luxury apartment prices have in recent years reached the R110m-R190m range in Clifton and at the V and A Waterfront Marina. Gone are the days when the highest prices paid were for houses, today, it is a luxury apartment overlooking the ocean along the sought-after Atlantic Seaboard strip, that are commanding some of the highest prices.
The same can be said for rentals. It now comes as now surprise to find luxury seaside apartments on this sought-after strip, priced upwards of R60 000-R170 000/month and even more, especially over the tourist season.
While overall activity has slowed and properties are taking longer to sell, up to 64 days on average, Ms Rautenbach says that this sector of the market continues to attract excellent prices as demonstrated above. Luxury apartments on the Atlantic Seaboard represent excellent investments as demonstrated by the above average growth in the selling prices. You simply cannot beat this type of investment, she adds.
The demand is fuelled by a mix of residential, holiday and investment buyers with a spread of about 50/50 between local and upcountry buyers with foreigners representing only a small portion this year despite the weak currency.
This sector of the market has grown enormously over the last five years. Lynn Pinn and Finella Botes, luxury sectional title agents for the Waterfront and Mouille Point areas attribute this to a mix of factors, foremost being the location and shortage of property, but also note that apartments have evolved beyond the traditional concept of flat living.
Modern lifestyle demands and today’s fast paced world of business have made these very desirable living spaces given the convenient lock-up-and-go factor, reduced maintenance, excellent security and liveability. With Uber, you almost do not even need a car these days, adding further luxury to this type of lifestyle, say the agents.
Added amenities such as a concierge service, gymnasium and swimming pool, either in the complex or close by and in the case of The Waterfront, a sought-after resort lifestyle add even more appeal. Ms Rautenbach points out that apartment prices have risen the fastest. Five years ago, the R100 000/sqm mark seemed a reach, today, we are looking at the R200 000/sqm mark as the next milestone that will be reached quite soon given the fabulous new luxury developments in Clifton and even in Mouille Point. The Silo District and other waterside development around the downtown area will further boost these values, she adds.
Luxury apartments on the Atlantic Seaboard are also currently achieving the highest average rental rates of up to R100 000-R170 000 in Clifton and Mouille Point.
As the only agency with an office in Mouille Point and the Waterfront, Seeff has been at the forefront of driving this market and agents, Lynn Pinn and Finella Botes have clinched 44% of all Mouille Point sales above R6m which achieved an average selling price of R13.412m (R84 500/sqm). At the Waterfront, the team secured 59% market share which have achieved an average price of R15m (R97 900/sqm). Buyers were a 50/50 mix of investment and second homes, mostly to local and Johannesburg buyers and two sales at the Waterfront to foreign investors.
The Waterfront boasts the highest volume of luxury apartment sales above the R4.5m range with 16 units sold this year, mostly on the Canals in Ellesmere, Juliette and Kylemore, priced from around R84 000-R99 964/sqm (Kylemore). Six sales were concluded on the Front Yacht Basin (FYB), priced around R110 000-R121 457/sqm (Pembroke).
Mouille Point follows with 10 sales, mostly at R65 000-R85 000/sqm to a highest of R115 423-R127 481/sqm, (both at The Waterclub). Clifton, Bantry Bay and Camps Bay each clocked up 8 sales and 4 in Fresnaye.
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