The small and exclusive suburb of Llandudno that hugs the coastline between Camps Bay and Hout Bay is increasingly luring big spenders. Along with wealthy local executives and families and foreigners, mostly Europeans, are heading to this area and snapping up exclusive homes in mostly cash deals.
Where very few sales breached the R10 million mark, pre-2007/8, about 40 percent of sales now regularly fall above this, according to Seeff, who recently sold a four bedroom home in Sunset Avenue to a cash buyer from Belgium for R12.5 million.
According to agents, Ashley Larter and Stephan Cross, following the 2007/8 downturn, sales volumes in the suburb slumped from about 22 annually to just around 10. However, over the last year, activity has improved markedly and is now back to the 2005/6 levels.
About 22 properties to the value of about R252 million - over 70 percent more in value terms, compared to the 2005/6 boom period - have been transacted in this area, ranging in price to almost R41 million this year, according to the latest Lightstone data.
The agents say the average sales price too has climbed to such an extent that the suburb now ranks in the top four most expensive neighbourhoods in the city. Where the average pre-2007 price was at around R6.6 million, it is now at almost R10 million, up by a phenomenal 25 percent from just over R8 million last year.
According to the agency’s luxury market specialist, Lance Cohen, three key factors - location, exclusivity and rarity - has driven demand and values ever higher and ensures the sustainability of value growth.
The location between the Twelve Apostles Mountains and the Blue Flag beach and ocean below, as well as the vistas on top of the exclusive seaside lifestyle, makes it one of the most sought after amongst, not only residential, but also investment and holiday home buyers, especially from Johannesburg, he says.
Cohen says with no commercialisation or high-rise apartment blocks and a single entry point, the suburb is exclusive and private. There is also no further room for development, and hence a limited number of properties. In fact, according to Lightstone, there are only 323 properties, compared to 654 in Clifton and 1 280 in Camps Bay.
Stand sizes too tend to be bigger than on the Atlantic Seaboard, something that adds to the desirability. All of these factors will continue driving capital values up and Llandudno could well end up as the most expensive millionaire's suburb after Clifton in the near future, he says.
For the best panoramic mountain and ocean views, roads such as Fishermans Bend, Leeukoppie and Apostle Roads a bit higher up in the suburb are the most sought after, while those looking for a luxurious beach house can head down lower in the suburb.
Cohen says no matter where you choose to buy, you are making a sound investment. As the price growth illustrates, the smart money points to the suburb as an investment hotspot for wealthy buyers, and if you are going to invest in this area, then the sooner the better. Of course, smart buyers have in recent years quietly gone about buying up older properties and renovating or rebuilding exclusive luxury villas.
Already, almost 20 percent of homes in the suburb are valued at upwards of R20 million, according to a survey released earlier this year by London wealth consultancy, WealthInsight, he says.
While there are still a few properties to be found below the R10 million mark, the suburb is increasingly characterised by exclusive architectural villas that are spacious and finished to the highest standards. Prices of these range well above this to just under R50 million, for what is arguably one of the most exclusive beach houses on the Atlantic Seaboard.
This particular home is situated on a stand of 892 square metres at the end of the exclusive Sunset Avenue. It is perched on the edge of the ocean with almost no neighbours, creating the sense of living on an island with total privacy. Aside from panoramic sea views as far as the eye can see from almost every room in the home, the top class finishes create the ultimate in luxurious barefoot beachside living.
The living areas are spacious and open-plan, and include a Caesarstone kitchen, two lounges, a study, wine cellar, five bedrooms, a double garage and large entertainment terrace with a swimming pool that overlooks the ocean.
