Over R580 million in new residential development units have been sold over the past year in the Western Cape metro areas alone. Around 300 unit sales – which does not include any re-sales - took place largely along the Western Seaboard, in the Southern Suburbs and on the South Peninsula.
Mick Joyce, MD for Pam Golding Properties' Western Cape metro region, says the popularity of developments is clearly still high, despite the pressures which interest rate hikes have placed on buyers: "One might have expected that the investment market in particular might see a dampening down in the current interest rate climate, but sales figures show that there is still high demand for affordable, well-positioned developments. Buyers have ranged from first-time entrants into the market, to buy-to-let investors, internationals seeking a summer home in Cape Town, Gautengers wanting a holiday home or lock-up-and-go pad in Cape Town, and locals wishing to downscale or relocate within the Cape Town area."
Along the Western Seaboard, properties for sale have included smaller security developments boasting a low maintenance lifestyle, as well as top-end luxury buildings along the Blouberg beachfront. Prices on offer ranged from an entry level of R399 000 at Casa Liana up to R5.25million at Portico. There are only three units left out of the original 62 at Portico, indicating that buyers are prepared to pay higher rates per square metre to secure the prime beachfront location. However, development manager for the Western Seaboard Ivan Swart says there has also been high demand for the more affordable developments. "Price sensitivity has become a major issue in the current interest rate climate, and as a result, our more affordable stock has sold extremely quickly. Developments like Costa de Lago and Casa Liana have attracted a mix of investors and buy-to-live purchasers, while Costa Azul with its location relatively close to the beachfront, sold out in 6 months. We have already had a re-sale at this development, with the seller securing a 30 percent capital increase. We expect to see similar levels of return for the six re-sale units which have recently come onto the market at Portico."
In the Southern Suburbs, the offering has also included a wide range of prices and lifestyles, from the security village at Stonehurst Close in Tokai, to chic urban design at 360° (360 Degrees) in Woodstock. There have also been high levels of demand for the concept of "city living in the suburbs", offered by developments like The Quadrant and Paramount Towers in Claremont, The Lofts in Tokai, and Rondebosch's "ONE SIX ONE" – evident in the fact that the second phase of The Quadrant has already started selling, before even being launched to the public. Entry-level prices at 360° are an affordable R469 000, so it is not surprising that this development has also sold fast to a market of investors and upwardly mobile young professionals, attracted by the appeal of living close to the CBD. Meanwhile the top-priced units at Stonehurst Close (R3.3 million) and Paramount Towers (R4 million) have appealed to buyers wanting to relocate within the Southern Suburbs, Gautengers seeking a base in the Cape, couples downscaling for retirement, and even corporates. There are only a handful of units still available at these developments.
The big success of the South Peninsula has been The Majestic Village in Kalk Bay, where sales in excess of R100 million have been concluded so far. Around half of the available units have sold over the graduated launch process, with buyers including foreigners and out-of-towners as well as locals relocating from the Southern Suburbs and Atlantic Seaboard. Prices at this development range from R1.4 million to R10.5 million.
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