16 May 2013
Luxury apartments on the Atlantic Seaboard in Cape Town are currently in demand with 71 of these apartments priced over R2.75 million sold in Sea Point, Bantry Bay, Three Anchor Bay and Fresnaye, 27 percent more than the 56 units sold during 2011.
According to Seeff Properties agents Adrian Mauerberger and Rosa Karp, sellers continue to cash in with exceptional capital growth yields amid soaring demand.
They note that while a number of units priced above R10 million were sold, demand is huge in the apartments priced between R3 million and R5 million.
“Sellers across all price bands have also achieved above average returns on their investments over the past year, an indication that apartments on the Atlantic Seaboard remain a sound investment.”
The agents say based on their 14 recent sales to the value of almost R112 million, sellers achieved an average annual capital growth of 27 percent.
Many of these have been apartments that had been bought smartly, either in a sought-after complex or location or have been upgraded and resold at a healthy profit.
Fresnaye House is a good example of a secure development where they sold a two bedroom unit (that was bought for just over R1.9 million about two years earlier) for R3.1 million and yielding 60 percent annual capital growth for the seller over the two year period, they explain.
Apartments sold in Sea Point typically yield modest annual capital growth rate of between 7 and 8 percent, with some of these being renovated and given a fresh look before being sold.
The agents say buyers are a mix of local residents downscaling from freehold homes on the Atlantic Seaboard and in the Southern Suburbs to a compact, lock-up-and-leave lifestyle along with holiday and investor buyers from Johannesburg and Durban.
African and European buyers continue to invest in the area with a Zimbabwean buyer snapping up a three bedroom apartment in Sea Point for R3.75 million and two German buyers spending R2.7 million and R4.5 million for apartments also located in Sea Point.
“Although demand is up and we are seeing a move towards a sellers’ market, buyers are educated and aware of pricing dynamics and market value,” according to agents.
City Bowl apartments are seeing great demand as older buyers sell their freehold homes in favour of safer apartments.
According to Signatura founder John Rabie, buyers favour Vredehoek as the formerly sleepy suburb undergoes an exciting renewal.
“Many of our buyers are experienced and savvy, and may spend time away from home travelling.
“They no longer need or want a huge suburban house with a garden and pool that needs constant maintenance.”
Why Vredehoek? Rabie says it offers views of Lion’s Head, Signal Hill, the city and the harbour, and has a charming village feel while being located close to the Waterfront and major highway networks.
With the completion of the MyCiti route to Vredehoek there is also no need to rely heavily on a car, he says.
Vredehoek has the same vibe as Notting Hill in London or even Brooklyn in New York City – an older neighbourhood that has lots of character but that is also undergoing a positive change to bring it up to date with new architectural innovations and lifestyles.
It was proclaimed after the First World War and is ready for a property renaissance.
Signatura’s latest block is 45 on Exner, a corner plot on Exner Road that will be home to 9 spacious apartments, each with two undercover parking bays and lift access.
Eight units will have two bedrooms while the penthouse will have three - expect to pay from R2.6 million.
In KwaZulu-Natal, The Reserve development on the Zimbali Resort’s coastal fringes, north of Umhlanga offers an unrivalled coastal lifestyle and exclusivity to match.
Seven of the 12 freehold stands have sold for a combined price of R11 million and these measure between 1 800 and 2 200 square metres.
Owner and developer Vince Christoforos says judging by the sales, he believes they command a record for the highest prices ever paid for single residential erven in KwaZulu-Natal.
The Reserve occupies a five hectare enclave, offering 300 metres of uninterrupted ocean views and these extend along the Zimbali coastline and include Umhlanga Rocks and as far as Durban harbour and the Bluff.
Inland views are of indigenous forest that typifies the Zimbali resort.
Christoforos explains that all bulk services have been installed.
He bought the site on auction after the original owner Mzi Khumalo, who had intended to build a 150 bed, six storey hotel went into liquidation.
Construction of the first homes will begin in July and all designs will be broadly determined by the Zimbali architectural aesthetic. - Denise Mhlanga
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