The strong performance of the Atlantic Seaboard and City Bowl luxury property markets seen in 2021 escalated further this year according to Ross Levin, licensee for Seeff.
Sales for the first seven months was over R5 billion, well ahead of what we have seen in recent years and for the first time in years, we are now seeing property stock in short supply, even in high-end areas such as Fresnaye, Bantry Bay and Camps Bay, he says.
To put this into perspective, the entire 2021-year only yielded sales of just over R6.6 billion. Additionally, trophy homes sales above R20 million is also well ahead of last year and already stands at over R1.64 billion which exceeds the whole of 2021.
Seeff alone has already sold close to R1 billion in listings with several sales above R20 million. These include R43.5 million and R23 million in Fresnaye and R21.7 million in Mouille Point (joint sale), all to local cash buyers.
Further high-value sales to international buyers include R24 million at The Waterclub to a German buyer, R22.6 million at The Bantry Bay (joint sale) to a Swiss buyer, and two sales in Camps Bay for R23,995 million and R23,9 million to buyers from the USA and UK respectively.
Semigration and high demand from local and international buyers for super luxury properties along our coast and mountain has driven strong sales since coming out of the lockdowns and the rains have again filled our dams to comfortable levels, he says further.
The higher activity is also due to more units sold this year and not because sellers have achieved higher prices per se. While the majority of sales took place in the first few months, and there has been a slowing due to winter and potentially the impact of load shedding and economic pressures, Levin expects that Cape Town may buck the trend with the rest of the country possibly more affected by the global economic challenges.
He adds that the old age adage of position, position, position, once again proves true. There are still really good opportunities for sellers as stock levels are depleted in the high demand price bands for both the sectional title and freehold property classes.
Apartments are the biggest seller on the Atlantic Seaboard comprising 70% of all units sold. Freehold houses account for the highest value, generating almost 60% of the value sales revenue this year.
It is similar across the City Bowl and CBD where apartments and sectional titles comprise 67% of all units sold and freehold houses make up 58% of the total value of sales revenue. There have also been several sales above R20 million over the last two years in the City Bowl.
According to Adrian Mauerberger and Bryan Ginsburg, luxury sectional title specialists for Seeff Atlantic Seaboard, the luxury R4,5 million to R6 million and the super luxury price band above R10 million have been more buoyant this year.
Sellers are now aware of the 20-odd percent price reduction since Covid and asking prices are more realistic which means that buyers should offer close to the asking price if they hope to close the deal.
In the City Bowl, the R2 million to R5 million price band is the most active for apartments and sectional title property according to Danny da Costa.
The highest volume of freehold houses sold on the Atlantic Seaboard is in Camps Bay. Nadine Jocum, property specialist with Seeff Camps Bay, says the market has been excellent over the last two years, predominantly below R18 million with a notable amount of high value sales above R20 million.
Buyers are flocking here from everywhere, local as well as SA Expats planning to return in the long-term along with semigration buyers from Gauteng and now also from KZN along with a return of international buyers.
While the market is still in a good phase, Ms Jocum says sellers should guard against pricing themselves out of the market. Buyers should also not wait too long as they will miss out on opportunities now.
Jo Lombard, luxury housing specialist for Seeff Atlantic Seaboard says the market has strengthened compared to last year. This is reflected in a higher number of sales, a higher average rate per square metre and an increase in the average selling prices. The luxury market is mostly favouring buyers with little impact of the higher inflation rate felt at this early stage.
In areas such as Fresnaye and Bantry Bay, the highest demand is in the R8 million to R10 million range, but there have been several high value sales above R20 million. Sellers are also getting better prices with the average shortfall between asking and selling prices now only around 10.24% compared to 14% last year.
Levin says the investment potential of the Atlantic Seaboard and City Bowl is proven. Property owners, buyers and developers have invested billions into upgrading and modernising the area which is now the most desirable residential real estate on the continent.
This area is a feather in the cap of the City of Cape Town and adds to its reputation as one of the most beautiful on the planet, often likened to Monaco and the French Riviera for the scenic similarities and fabulous cosmopolitan coastal lifestyle.
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