Some people in Cape Town are willing to pay up to R50 million for apartments or even R70 000 per month to rent upmarket apartments in the coastal city’s most desirable areas.
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According to Seeff Property Group, while freehold property still accounts for more than half of all property sales in the country, there is an increase in demand for apartments, with buyers willing to pay higher prices.
Seeff cited factors such as urbanisation, traffic congestion and the need to live closer to work as key drivers of the demand for apartments.
Propstats data shows a booming apartment sales market, with over R6.1 billion in apartment sales in Cape Town over the last year.
On the Atlantic Seaboard, apartment sales topped R3.3 billion last year. More than 20% of sales were priced below R2 million, while over one-third of sales were more than R5 million.
According to Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl, apartments achieved some of the highest prices paid in Cape Town last year.
Eventide apartments in Clifton sold for R50 million and R53 million, while an apartment in Helenslee at the Waterfront sold for R54 million.
According to Levin, flat sales in the City Bowl/CBD exceeded R1.2 billion, with 46% selling for less than R2 million and 30 for more than R5 million.
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Certain sales exceeded R10 million as price ceilings continue to rise due to increased demand for flat living, according to Levin.
While other CBDs in Johannesburg and Durban have seen significant declines since the Covid lockdowns, Cape Town’s performance stands out because its CBD has seen an increase in flat sales over the last year, with approximately 159 units selling at an average price of R2 432 793.
The highest price achieved in the City Bowl is R17.95 million for 16 On Bree.
According to Seeff, tourism and business access are driving strong demand for flat rentals along the Atlantic Coast and in the City Bowl/CBD. This makes them a good rental investment.
Century City is another popular area in Cape Town, particularly for apartment rentals, according to Helga Clemo, Seeff’s licensee in the area. The highest rental achieved was R70 000 per month for a furnished flat in Crystal Towers.
The Gauteng metros are also extremely popular for flat living, according to Charles Vining, MD of Seeff Sandton.
Although the vast majority of apartments sell for less than R4 million, prices for high-end luxury apartments in the Sandton CBD now range from more than R20 million to upwards of R80 million for a penthouse.
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Picture: Tobias Reich / Unsplash
