Although the upper end of the property market has wavered in the face of a weak economy, it is still showing remarkable resilience.
The Atlantic Seaboard has for many years been regarded as one of the most desirable residential addresses in South Africa, with skyrocketing prices and consistent double digit returns firmly positioning the upper end of the market in the prestigious luxury home category, increasingly peppered with trophy homes.
And although Clifton may still be the crown prince along this exclusive strip, the conveniently positioned stretch from Bantry Bay towards the CBD has become increasingly popular in recent years, with the number of trophy homes priced above R20 million rising every year, especially in Bantry Bay and Fresnaye.
Lara Kaplan and Fran Segal, Area Specialists in Fresnaye, Bantry Bay, Sea Point and Greenpoint for Lew Geffen Sotheby’s International Realty, say that although the upper end of the market in the area has been hardest hit by the economic slump with a notable drop in sales and an increase in the time homes spend in the market, it has shown unexpected resilience.
“According to Propstats data, in 2015, 22 of the 39 houses sold in Fresnaye were in the R10m plus bracket, with six selling for more than R20m and in Bantry Bay nine of the 13 house sales were above R10m plus and six realised more than R20m.
“A year later, we started to notice a dip in sales volume but, conversely, also an increase in the number of homes achieving trophy home status, with seven of the 35 houses sold in Fresnaye and four of the nine house sales in Bantry bay being in the R20m plus price band.
“Last year, sales had dropped further in Fresnaye but 23 of 32 houses on the market sold for more than R10m and eight for more than R20m. In Bantry Bay nine of the 11 house sales were in the R10m plus bracket, of which four realised in excess of R20m.”
Chairman of the group, Lew Geffen says that although the upper market segment here is admittedly now beyond the reach of many buyers, investors keen to buy their dream home against the slopes of the mountain do have options, although the window of opportunity is closing quickly.
“Idyllically positioned, wind-free Fresnaye and Bantry Bay now are arguably the most sought-after residential suburbs in the country but the same calibre homes can be found in neighbouring Upper Greenpoint and Sea Point where prices at the top end of the market have been climbing steadily.
“Both suburbs have both seen a spike in homes achieving more than R10m during the same period, with recent sales elevating Upper Greenpoint to trophy home status. However, there are still a few of the more accessibly priced properties available to be snapped up by savvy investors looking for a robust return on investment.”
In 2015, only three of the 32 houses that changed hands in Greenpoint realised more than R10m and just a year later, the number had tripled to nine. Last year sales volumes dropped noticeably with only 25 house sales, but of these, six were sold for over R10m and for the first time the R20m mark was breached. There are now several homes priced above R20m on the market.
House sales in Upper Sea Point have followed a similar pattern and the exclusive luxury beachfront apartments have also kept pace. Kaplan and Segal say that there are currently several excellent investment opportunities in Upper Green Point and Sea Point, including one they are currently marketing in sought-after Springbok Road.
“This is an exceptional property which is not only a stunning home but also a very savvy investment offering very attractive returns in the long and short-term.
“It’s an impressive multi-storey freehold home with never-ending views that is split into two units – an expansive three-bedroom unit and below a spacious apartment with two bedrooms which can be rented out or utilised as dual living for extended family. They are both accessed by an elevator and both have private pools.
“There are also sectional title approval rights in place, should the new buyer want to turn sell off one unit and live in the other or sell the two units separately down the line for an increased return on investment.” The agents conclude: “All four suburbs are conveniently near to the multitude of amenities in the vibrant main road from Sea point and only a short drive from the CBD. They are also situated in close proximity to several good schools, popular beaches and the Waterfront and they all offer an incomparable lifestyle.”
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