Glen Road in Camps Bay is the second-most valuable street in South Africa, according to Lightstone. However, the Twelve Apostles side of Camps Bay which overlooks Bakoven has become increasingly popular and prices are now nudging the suburb’s record transactions.
A recent sale by Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic Seaboard CEO, achieved not only the highest rand per square metre on the Apostles side of Camps Bay but also the highest sale price by an agent.
The 854,4m² state-of-the-art home sold for R47m, including Vat, at R55,009 per m², which is superseded by only two other sales in the area: one on Glen Beach and another in Bakoven. A third property, the Enigma estate, was sold privately earlier this year for an undisclosed amount after being on the market for R99m.
“Camps Bay remains popular despite the overall slowing in the economy and housing market as it offers investors a wide choice in properties with its 60/40 mix of freehold and sectional title homes,” says Miller. “The suburb also has an advantage over its immediate neighbours in that most of the houses are set on sizeable stands.
“What is notable is that much of the recent activity in the market has been driven by younger investors under the age of 35.
“This is in line with the marked increase in first-time buyer activity in South Africa in recent years, particularly within commuting distance of cities, as the young professional demographic has expanded.”
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, investment in Camps Bay has always been lucrative. “This is borne out by the fact that properties across all price bands have recorded on average a healthy nominal percentage return on investment of 16% per annum over eight years,” he says. “And five years ago only around 10% of all freehold house sales were above the R10m price mark, while almost 40% of recent sales fall into this price band.
“Over an eight-year period between 2007 and the end of 2014, the R10m to R20m price band improved by a whopping 138%, with a total of 16 properties sold to the value of R211m compared to only seven homes to the value of R88,98m in 2007.”
Miller says Camps Bay’s long- and short-term lets command some of the highest rates in the country.
“Long-term house rentals now range on average between R30,000 and R70,000 per month, while owners can command in excess of R30,000 per day for an upmarket villa.”
However, while Cape Town’s luxury housing market has been on the up for over a decade, high-end properties in the Mother City are still cheap by international comparison, according to a recent report by Wealth-x and Sotheby’s International Realty, Europe, Middle East and Africa Luxury Residential Real Estate 2015.
The report’s authors calculated their luxury real estate rankings by comparing the price per square foot of properties valued at more than $1 million (R12m), and Cape Town was found to have the lowest average price per square foot, and the lowest average listing price for such properties, making it an extremely affordable and attractive investment prospect for international investors.