Cape Town Atlantic Coast ownership soars, stocks are scarce
The strong performance of the Atlantic Seaboard and City Bowl luxury real estate markets seen in 2021 has further intensified this year according to Seeff licensee Ross Levin.
Sales for the first seven months exceeded 5 billion rand, well ahead of what we have seen in recent years and for the first time in years we are now seeing a shortage of property, even in high-end areas. range such as Fresnaye, Bantry Bay and Camps Bay, he says.
To put that into perspective, the whole of 2021 only generated sales of just over R6.6 billion. Additionally, trophy home sales above R20 million are also well ahead of last year and already stand at over R1.64 billion, exceeding the whole of 2021.
Seeff alone has already sold nearly R1 billion worth of listings with several sales over R20 million. These include R43.5m and R23m at Fresnaye and R21.7m at Mouille Point (joint sale), all to local cash buyers.
Other high-value sales to international buyers include R24 million at Waterclub to a German buyer, R22.6 million at The Bantry Bay (joint sale) to a Swiss buyer and two sales at Camps Bay for 23 R995 million and R23. 9 million to buyers from the US and UK respectively.
Out-migration and high demand from local and international buyers for luxury properties along our coast and mountain have driven strong sales since lockdowns emerged and rains have again filled our dams to comfortable levels, says it further.
The higher activity is also due to the greater number of units sold this year and not to the fact that sellers have achieved higher prices per se. While the majority of sales took place in the first few months, and there was a slowdown due to winter and potentially the impact of load shedding and economic pressures, Levin expects Cape Town could turn the tide with the rest of the country perhaps more affected by global economic challenges.
He adds that the old age adage of position, position, position, once again proves true. There are still very good opportunities for sellers as inventory levels are depleted in the high-demand price ranges for cutaway titles and freehold classes.
Apartments are the top sellers on the Atlantic coast, accounting for 70% of all units sold. Freehold homes represent the highest value, generating nearly 60% of value sales this year.
The same is true in the City Bowl and CBD, where apartments and sectional titles make up 67% of all units sold and freehold homes make up 58% of the total value of sales revenue. There have also been several sales in excess of R20 million over the past two years in the City Bowl.
According to Adrian Mauerberger and Bryan Ginsburg, luxury section title specialists for Seeff Atlantic Seaboard, the luxury R4.5-6 million and super luxury price range above R10 million has been more buoyant this year.
Sellers are now aware of the roughly 20% price reduction since Covid and asking prices are more realistic, meaning buyers should bid close to the asking price if they hope to close the deal.
In the City Bowl, the R2-5 million price range is most active for apartments and sectional title deeds according to Danny da Costa.
The highest volume of freehold homes sold on the Atlantic Coast is in Camps Bay. Nadine Jocum, property specialist at Seeff Camps Bay, says the market has been excellent over the past two years, mostly below R18m with a notable number of high value sales above R20m. .
Buyers are flocking here from all over, locals as well as South African expats planning to return long term with semigration buyers from Gauteng and now also from KZN with returning international buyers.
While the market is still in a good phase, Ms. Jocum says sellers should be wary of selling out of the market. Buyers should also not wait too long as they will miss opportunities now.
Jo Lombard, luxury accommodation specialist for Seeff Atlantic Seaboard, says the market has strengthened compared to last year. This results in a higher number of sales, a higher average price per square meter and an increase in average selling prices. The luxury market primarily favors buyers with little impact from the higher inflation rate felt at this early stage.
In areas such as Fresnaye and Bantry Bay, the highest demand is between R8 and R10 million, but there have been several high value sales over R20 million. Sellers are also getting better prices, with the average spread between asking and selling prices down to just around 10.24%, down from 14% last year.
Levin says the investment potential of the Atlantic Coast and the City Bowl is proven. Property owners, buyers and developers have poured billions into upgrading and modernizing the area which is now the most sought after residential property on the continent.
This region is a feather in Cape Town’s hat and adds to its reputation as one of the most beautiful on the planet, often compared to Monaco and the French Riviera for scenic similarities and fabulous lifestyle cosmopolitan coastal.
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