Holiday lifestyle and property in Mouille Point
The small suburb of Mouille Point, home to over 2 000 residents and with its landmark red and white lighthouse, the oldest in the country, is fast becoming one of the most exclusive neighbourhoods of the Atlantic Seaboard.
This three bedroom apartment in Mouille Point, Cape Town, has a covered patio with unobstructed sea views. It is selling for R17.995 million - click here to view.
This is according to Ian Slot, Seeff’s managing director for the Atlantic Seaboard and City Bowlarea, who says sales activity and property values in Mouille Point has more than doubled over the last five years. This is twice as fast the national average, which shows property doubling in value roughly every ten years.
Located between Three Anchor Bay and Granger Bay, almost adjacent to the V&A Waterfront and close to the CBD makes Mouille Point prime real estate, says Slot.
He says its surging popularity and value growth is almost certainly linked to the development of the waterfront precinct and rise in demand for city living, the seaside location being an obvious added driver of demand and value.
Although the suburb first developed in the 1940s, it has only become fashionable in recent years. Today, Slot says it is one of the most sought-after addresses in the city, and even country. To own a property and enjoy the holiday lifestyle year-round is now highly prized, with buyers prepared to pay a premium, he says.
Slot says where you could once buy a sea-view flat on Beach Road for around R2.3 million, buyers are now paying well into the upper millions. Five years ago almost 40% of the sales on Beach Road were still under the R2 million price mark. Now, only about 13% of sales are concluded for R2 million or less.
Agent Kim Bailey says looking at the top end of the market, almost 40% of activity over the last year, August 2014 to end July 2015, were in the price band of R10 million and above, with sales now comfortably breaching the R20 million price mark.
In contrast, less than 10%, or only 4 out of about 49 of sales recorded for 2010 were above the R10 million price mark.
Five years ago, real estate sales for the suburb amounted to R160 million at an average price of R3.3 million. Over the last year, this has more than doubled to almost R390 million at an average price of about R6 million.
Gutteridge says with 360-degree views of Table Mountain and the city to the rear and the ocean to the front, almost anywhere in the suburb is a good bet for buyers, and now also sellers, given the strong demand almost across the board.
Exclusive sea-facing apartments with trendy interiors and luxury finishes on Beach Road are, in fact, now valued well above this to as much as R40 million, and these are attracting the attention of buyers, says Bailey.
Agent Bianca Gutteridge says where it was once a run-down neighbourhood, Mouille Point now has a bit of a mini-Manhattan feel to it. Trendy new high rises and older blocks though sit comfortably side by side.
Many of the older apartments are being remodelled and upgraded at a rapid pace and these are selling like hot cakes, especially at the lower sub-R4 million end of the price scale, she says.
Gutteridge says Mouille Point has a number of unique aspects that complement the attractive location. While essentially a high density suburb that mostly comprises apartment blocks with a total of about 1 540 units, it is surrounded by plenty of greenery, from the lawns and promenade on the ocean side to the nearby green belt and golf course.
And all of this is set against the backdrop of Table Mountain and Lion’s Head, she says.
Whereas it was once mostly older people, generally retirees, who were buying in this area, almost 40% of recent sales were to younger buyers as the young and upwardly mobile invest in real estate.
Not only locals are buying here, says Gutteridge. Buyers from across the globe are also heading to this area.
Bailey says almost 40% of recent sales were holiday and investment homes. A handful of these were made to foreign buyers, but the majority to Johannesburg-based buyers, along with buyers from KwaZulu-Natal, the Free State and Eastern Cape.
Mouille Point is also a cash-rich market with the majority of sales concluded to cash buyers. This should be of interest to prospective sellers, who should also note that the prices achieved in this area are excellent, she says.
Slot says the small suburb of Mouille Point, home to over 2 000 residents and with its landmark red and white lighthouse, the oldest in the country, is fast becoming one of the most exclusive neighbourhoods of the Atlantic Seaboard.
While the average difference between asking and selling prices on the Atlantic Seaboard is at under 8%, it is only about 4% for Mouille Point. Almost all of the recent sales were concluded for close to or just about full asking price and, well over 60% are cash deals, she says.
Gutteridge says with 360-degree views of Table Mountain and the city to the rear and the ocean to the front, almost anywhere in the suburb is a good bet for buyers, and now also sellers, given the strong demand almost across the board.
She says the lifestyle is just superb. “You are within easy reach, even walking distance of so much.”
There are shopping and leisure facilities of the V&A Waterfront on the one side, on the other side there is the Green Point village with its retail facilities and restaurants, as well as the CBD with all that it has to offer.
Also in the area is the Cape Town Stadium, as well as Green Point Park, both major city landmarks.
While Mouille Point does not have a beach, you are within easy reach of the Blue-Flag beaches of the Atlantic Seaboard, including Camps Bay and Clifton. The Sea Point swimming pool is also nearby, and there are walking and cycling trails that lead to the waterfront on the one side andBantry Bay on the other. There is also the nearby outdoor gymnasium to enjoy, says Gutteridge.
Demand remains high and it is still a good time for sellers in the suburb. Apartments are now commanding rates of around R48 000 per square metre on average, and have sold at the top end for as much as R104 418 per square metre.
Aside from top sales in the new Amalfi development, notable sales this year include a 212sqm unit in Thermopylae that sold for R11 million at R51 887 per square metre. A 338sqm unit in Aquarius sold for R22 million at a rate of R56 701 per square metre, while a 222sqm unit in Mouille Sands sold for R16.5 million and R74 324 per square metre.
Bailey says the fact that property in the suburb is an excellent investment can also be gleaned by looking at a few recent sales. For example, a 200sqm unit in Mouille Sands that was bought in early 2003 for R2.3 million was recently resold for R9.5 million. That is more than three times the original price and a nominal return on investment of 313% in just 12 years.
A 248sqm unit in South Seas that was bought in mid-2006 for R4.1 million was resold in June this year for R8.5 million, delivering a nominal return on investment of 107% in nine years. This, too, is better than the national average that shows that property in South Africa tends to double in value on average every ten years.
Gutteridge says the suburb is popular for rental accommodation too, both for short-term lets and for longer-term residential purposes.
Long-term rental rates range from around R20 000 for two bedrooms, to as much as R47 000 to R50 000 per month for a prime beachfront unit. Short-let rates range from around R1 500 to about R5 500 per day, depending on the location and time of year, with holiday seasons being significantly costlier.