Cape Town apartments going for above 4.5 million – the luxury apartment sector – represent about 40% of the Atlantic Seaboard apartment market. Sales for the year, until July 2017, already top R1.2 billion with 97 units sold at an average price of R12.7 million.
According to Seeff Property Group, the average rate is 24% higher than in 2016 (R10.3 million) and up 44% in just five years, from R8.8 million in 2012.
Sales director for Seeff for the region, Billy Rautenbach, said that less than half of all sales (45%) in 2017 are below R10 million. He says that as many as 14 sales have been concluded in the super luxury R20 million-plus sector.
Although properties are taking longer to sell – up to 64 days on average, and the general activity has slowed down, Rautenbach said that the luxury apartment sector of the market continues to attract first-rate prices.
“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.”
Seeff says that the demand is motivated by the combination 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.
The convenient lock-up-and-go factor, great security and reduced maintenance of these spaces meet the modern lifestyle demands and the face-paced business world of today.
“Five years ago, the R100,000/sqm mark seemed a reach – today, we are looking at the R200,00/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,” Rautenbach said.
“The Silo District and other waterside development around the downtown area will further boost these values.”
Luxury apartments in Clifton and Mouille Point are also currently achieving the highest average rental rates of up to R100,000 – R170,000.
44% of all Mouille Point sales are above R6 million, with an average selling price of R13.412 million (84,500/sqm), said Seeff. The property group achieved an average price of R15 million (R97,900/sqm) at the Waterfront.
Boasting the highest volume of luxury apartment sales above the R4.5 millon range with 16 units sold this year, the Waterfront sees apartments going from around R85,000/sqm.
Six sales were seen on the Front Yacht Basin, priced around R110,000 – R121, 457/sqm.
Following with 10 sales, Mouille Point saw sales going mostly as R65,000 – R85,000/sqm to a highest of R115,423 – R127,481/sqm, both at The Waterclub.
Clifton reached the highest prices, mostly around R85,000 – R115,000/sqm to as much as R141,566 – R156,627/sqm on La Corniche and Victoria Road.