Hot property in Capes Atlantic Seaboard
It is not a shortage of buyers, but rather a shortage of property stock that is now the biggest challenge for estate agents across the Cape Town Atlantic Seaboard and the neighbouring central city and City Bowl areas.
This four bedroom house in Camps Bay, Cape Town, has a study, fireplace, wraparound patios and an outdoor recreational room. It is priced at R8.5 million - click here to view.
This is according to Ian Slot, Seeff’s managing director for the area, who says well-priced properties are flying off the shelf in this area, and both the sales and rental market is still hot property.
Slot says on the Atlantic Seaboard alone, over R2.7 billion in real estate has already sold during the first half of this year at an average price of about R7.3 million. That is over 10% more compared to the first six months of last year’s total value of R2.4 billion, while the average price is 20% up on last year’s about R6.1 million.
With sales ranging to R100 million for a luxuryClifton home and rentals of up to R100 000 per month, there is still no let-up in the demand. And, while the banks are signalling a slowdown, there are still no signs of that in this area.
He says what they are finding now is that the market is being driven by a lack of supply rather than a lack of demand.
This property in Clifton, Cape Town, offers four bedrooms, four bathrooms and an open-plan living and dining area. It is on the market for R39 million - click here to view.
“Moving from a position of oversupply, we are now sitting with a severe undersupply, a situation that is putting pressure on agents to find stock to meet the buyer demand.”
Slot says there is still an abundance of buyers, and with stock levels severely depleted, the pace of new stock coming onto the market is still too slow to meet the buyer demand.
Properties are selling ever faster, and for closer to the asking prices. Last year May, the average time that it took to sell a property in this area was around 85 days, it is now about 23% faster at 65 days.
In reality, Slot says well-priced homes, especially below the R10 million to R15 million price mark, can sell within a day of coming onto the market.
Three years ago, properties were selling for about 20% to 30% below the asking price. Today, the average sits at around 8%.
“During the last three months, we have seen the percentage of all sales concluded for close to or full asking price move from 30% in March to about 60%,” he says.
This three bedroom property in Bantry Bayhas two lounges, a gym and rim flow pool. It is on the market for R30 million - click here to view.
The only properties that tend to sit around are those that are overpriced and consequently attract no interest.
Luxury sectional title agents, Adrian Mauerbergerand Cecily Sher are finding the R4 million to R8 million price band to be most in demand, and the range where stock is needed the most.
The demand is such that buyers are prepared to pay top prices in areas such Sea Point and Bantry Bay.
A cash buyer, for example, paid R42.5 million for an apartment in The Bantry and recently a 425sqm unit with three bedrooms in Bonne Nouvelle,Victoria Road, was sold for R33 million. This equates to R77 647 per square metre, one of the highest rates on the Atlantic Seaboard.
Camps Bay agents, Rochelle Serman and Lyn Pope say in this area, too, the market remains active with a severe stock shortage, especially below the R15 million price mark. The suburb now has an entry-level price of R7 million.
This two bedroom apartment in Sea Point has an enclosed garden and private swimming pool. It is selling for R5.95 million - click here to view.
“In the last year, we have also seen a number of top-end sales above the R15 million price mark in the suburb, ranging to R24 million for a three bedroom villa with a rim-flow pool and sea views.”
Another high demand area is the V&A Waterfrontwhere agents, Ross Levin and Kim Bailey, say the bull-run on apartments in this area continues.
The agents alone have sold 8 apartments above the R20 million price mark, ranging to a top price of R97 272 per square metre for a prime three bedroom unit in Palgrave on the Front Yacht Basin.
Slot says with quicker turnaround times and almost half of all buyers now paying close to or full asking price, it remains a positive phase for sellers both on the Atlantic Seaboard and across the City Bowl.