Cosmopolitan property in Cape Towns Green Point
Average apartment prices in Cape Town’s Green Point have increased by a staggering 41.95% over the past four years since 2011, placing the suburb ahead of its neighbours De Waterkant,Three Anchor Bay and Sea Point East above Main Road.
This modern apartment in Green Point, Cape Town, offers two bedrooms. It is selling for R5.75 million - click here to view.
This is according to Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic SeaboardCEO, who says registered sales at the Deeds Officeshow that in 2010, the average apartment price in Green Point was R1.685 million with a median price per square metre of R19 710.
By the end of 2014, he says the average apartment price had increased to R2.392 million, at just under R39 000 per square metre.
Miller says Green Point also outperformed its neighbouring suburbs in terms of sales volume, with 929 apartments to a total value of R1.692 billion being sold in the period measured between 2010 and the end of the first quarter of 2015. Not far behind is Sea Point East, with 886 apartments sold to a combined value of R1.532 billion.
“Three Anchor Bay and De Waterkant are both much smaller in terms of size, and their sales over the same period were 388 units to the value of R692 million and 536 units to the value of R1.089 billion respectively.”
Miller says the most popular price band has been for properties under R2.5 million, with 174 registered sales to the value of almost R260 million at an average sale price of R1.49 million, at R30 330 per square metre.
Properties priced between R2.5 million and R5 million showed the second highest interest, with 49 units sold to the combined value of R166.5 mllion at an average of just under R3.4 million. The average price per square metre in this price band is R58 000.
This two bedroom apartment in Green Point, Cape Town, comes fully furnished and is on the market for R4.5 million - click here to view.
Miller says the upper end of the market is lagging a little, as only nine apartments in the R5 million to R10 million, and seven apartments in the R10 million to R20 million price bands were sold during this period. The average sale prices were just over R6 million and R11.6 million respectively.
According to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, the growth in both sales price and volume can be largely attributed to the substantial urban renewal in Green Point, which was initiated for the 2010 World Cup.
He says this extensive economic boost inspired additional refurbishments in the suburb.
“We’ve seen numerous old buildings demolished to make way for modern apartment blocks, the latest of which was launched just this month, and there has also been extensive renovation to older apartment blocks and an upgrades and expansion to the commercial component in the area.”
Geffen says this has impacted enormously on the return on investment (ROI) for property owners, particularly for those who bought apartments in the area prior to 2010.
“The return on investment measured during 2014/15 in Green Point showed a healthy return of an average nominal growth rate of 16% per annum recorded over eight years, which theoretically means that an investor could double his money in eight years if the growth rate remains consistent,” he says.
Situated a few kilometres to the west of Cape Town's CBD, this apartment in Green Point has an open-plan kitchen and lounge. It is on sale for R2.4 million - click here to view.
The past decade has seen several new apartment developments being built in Green Point, including Cape Royale, The Legacy, The Odyssey, Eclipse and 177 On Main, with the emphasis being on the current ‘lifestyle’ trends.
Geffen says most of those which are not situated on Main Road are in Upper Green Point above High Level Road, and these properties are fetching the highest prices with their sophisticated, modern design, quality finishes and views.
Jolene Alterskye and Simony Santos, area specialists for Lew Geffen Sothebys International Realty, say there is now a wide choice of trendy and upmarket apartments on offer for the discerning visitor, from newly wedded couples seeking luxurious honeymoon accommodation, to corporate professionals purely interested in the genuine lock-up and go option.
Alterskye and Santos highly recommend the Cape Royale Luxury Hotel and Residence, which is ideally situated within walking distance of not only the CBD, De Waterkant and the Cape Quarter, but also the Virgin Active gym and the award-winning Green Point Urban Park.
Offering a variety of accommodation options, the Cape Royale also has full in-house amenities and facilities, including a full concierge service and the stylish Skye Bar on the pool deck.
Recently completed developments in the suburb include The Richmond and Versailles, with TheChelsea due for completion before yearend.
Miller says these properties are attracting more and more corporate travellers and affluent tourists to the area, as well as successful young corporate types who work in De Waterkant, theWaterfront or in the CBD.
Green Point’s conveniently central location has always been its main drawcard, but he says the accommodation options available until recently didn’t cater for this calibre of visitor or owner.
“However, with additional new developments like Ten on Ravenscraig and Romney One currently in planning stages and selling off plan, there is little land left in the area for development, and opportunities are few and far between,” says Miller.
Geffen says while Green Point was once regarded as rather run down and the poor relation to its exclusive Atlantic Seaboard neighbours, it is now highly sought after for its cosmopolitan feel and myriad of eclectic shops, cafés and restaurants, as well as its proximity to all the main attractions and amenities of Cape Town.
“In short, property in the area is an excellent investment, which is set to grow exponentially considering Green Point’s location and the economic injection it has already received,” he says.