Going along with national trends, the residential property market at Cape Town’s V&A Waterfront has felt the pinch of global economic conditions, especially with the exit of a number of foreign buyers who had made up a substantial portion of owners at the marina.
The view from a marina-facing apartment at the V&A Waterfront. It has two en suite bedrooms and an open-plan living area with an integrated modern kitchen. The apartment has patios on both sides, so it has marina and mountain views. It is on the market through Pam Golding Properties for R12.9 million.
However, Pam Golding Properties (PGP) reports the property market is showing signs of a sustained recovery, with an appetite for well-priced residential properties.
The secure, sophisticated lifestyle, together with views of the yacht basin, mountains and ocean ensure that the marina remains one of the most prestigious residential addresses in Cape Town.
Basil Moraitis, PGP’s area manager for the Atlantic Seaboard and City Bowl says the sales volumes in 2012 have been encouraging. “Granted, these volumes are down from the heyday of 2006 to 2008, when there were 50 to 60 sales a year,” he says, but they have already seen more than 20 properties change hands this year (as at end October; all agencies), to a total sales value of over R150 million. He adds this is with the peak mid-summer season still ahead and it seems reasonable to expect the total value sold at the V&A will top R200 million, as it has done consistently for the past three years.
This full-floor apartment at the V&A Waterfront has three bedroom suites, study and a large open-plan entertainment area with a fireplace. A wrap-around patio offers views of the marina, and it has a private swimming pool. It is on the market through Pam Golding Properties for R40 million.
The sales have been dominated by properties in the R5 million to R7 million price range, with PGP agents Lynn Pinn and Paul Levy achieving the top price of the year so far – R15.6 million for an apartment in the Pembroke building. Moraitis says their success speaks for itself, as out of the properties sold so far, they have done 12 of the deals to a total value of R81 million. "That’s more than four times the value concluded by any other agency operating in the area, for both unit sales and total value sold, and represents over 50 percent market share."
Pinn and Levy say the bulk of buyers have been local investors, who see the Waterfront as a good vehicle for both short-term rental yields, and long-term capital growth. Moraitis adds that property is being viewed as a rand hedge due to its sustained appeal to the international market.
Although he says the volume of international buyers may not be what it was, the area remains a favourite among international tenants, who appreciate the security, central location close to the Waterfront shopping precinct and Cape Town’s central city, and the access to the Atlantic Seaboard beaches and Cape Town International Convention Centre.
"The V&A remains a highly sought-after address for top-end buyers and tenants alike, with a sophisticated, cosmopolitan ambience and a lifestyle unlike any other area of the city.”
Currently, entry-level prices at the V&A Marina start at R3 million and range up to R60 million and more for some of the super-luxurious duplex penthouses.