With sales topping R6.28bn, the property market in the Atlantic Seaboard and Cape Town City Bowl is on fire as we head into summer.
This area has become the premier residential real estate belt in the country, with the undulating coastline and two of the continent’s most beautiful Blue Flag beaches, Camps Bay and 4th Beach Clifton. Aside from that, there is a waterfront, healthy resort lifestyle and fabulous views which make this area a hotspot for property investment.
“The annual holiday selling season for the Atlantic Seaboard and City Bowl is now in full swing and we expect a busy summer,” says Ms Billy Rautenbach, sales director for Seeff’s Atlantic Seaboard, V&A Waterfront and City Bowl areas.
Foreign and local buyers from inland have bought property across these areas to a combined value of R6.28billion, so far. The holiday season brings a spike in buyer interest, particularly among those looking for a second home or wishing to migrate from Johannesburg or Pretoria. Show houses should fetch hordes of visitors over the summer months.
More tourists are expected to invest in these areas largely due to the favourable exchange rate. However, the increase in foreign property purchases is also due to the fact that Cape Town is now the busiest tourist city on the continent, with the Atlantic Seaboard and City Bowl areas ranking as the most popular areas.
According to Ms Rautenbach, the average selling price in this area is R4million, with the lowest sale being R1.1million for a small flat and the highest sale being R22million for a luxury home in Higgovale. This year, sales in this area have already totalled R1.6billion. Rautenbach also says that, although there are exceptions, most properties are selling within about 44 days of listing date and at an average price discount of only 5.7%.
- Sectional title: These homes make up roughly half of the value of all property in this area, this year. According to Seeff’s sectional title team, summer will bring an influx of second home and investment buyers, with the new year bringing many residential buyers, particularly those working in the city.
- Apartments: From studio flats in the R1million-R1.3million range, to two bedroom flats priced around R2.5million, apartments in the City Bowl and CBD are selling fast.
- Freehold: According to Michael Hauser and Doris Ricketts of Seeff, freehold houses remain in high demand, with an expected influx of buyers towards the start of next year looking in the R5million-R10million price range. The suburbs of Higgovale and Oranjezicht attract buyers who are willing to pay well into the upper millions.
The Atlantic Seaboard suburbs too remain active, says Ms Rautenbach. Here, sales of some R4.38bn have already been concluded. The sub-R15million price remains the busiest, accounting for about 80% of all transactions.
Properties under R10million typically spend just over a month on the market at a discount price of 5%, compared to the 7% market average. Ms Rautenbach says that the average selling price for the Atlantic Seaboard this year stands at around R8m. The lowest sale made by the agency is R1.3million for a small flat and the highest price achieved was R75million in Fresnaye. The R20million+ super luxury sector is more active over the summer period, due to foreign buying being up over the holiday season.
Camps Bay continues to see high demands and buyers are urged to not to wait, but strike while the iron is hot, as prices will not be coming down. The most sales activity takes place in the R8million-R15million range in this area, and due to the ideal lifestyle, many buyers feel that it’s worth stretching the budget.
- Sectional title: The lower end of the sectional title market is doing well, with apartments below R3million in areas like Green Point and Sea Point selling within 1 day, according to agents Hilary Biccari and Bryan Ginsburg.
- Apartments: Luxury apartments in the R4million-R6million price range are hot sellers according to estate agents Adrian Mauerberger and Cecily Sher. However, there’s a shortage of top end apartments in the R15million-R30million price sector.
- Freehold: According to Karen Lurie, the demand for freehold houses, especially family homes in areas such as Clifton, Fresnaye and Bantry Bay in the R10million-R15million price range are always in high as the year sets off. Parents are often looking for homes close to the schools.
Something for everyone
Although Cape Town City Bowl and the Atlantic Seaboard are now the most expensive areas in the country, there is still something here for every buyer. With prices ranging from around R2million for a nice apartment in the CBD or Sea Point, to luxury villas in Clifton and Camps Bay around the R20m to R200million mark.
Samuel Seeff, chairman of the group, says that you cannot go wrong with property in Cape Town and in areas such as the Atlantic Seaboard and City Bowl in particular. These areas will remain resilient and rather impervious to the economic fluctuation and we will see high end buyers continuing to look for opportunities to get a foothold in the areas. If you are a seller, now is a good time and if you are thinking of buying, don’t leave it too late.
Take a journey through the Atlantic Seaboard here:
