Atlantic Seaboard sales R4,9bn for 2015, sellers get 90% of asking price
Last year was a solid year for the Atlantic Seaboard, CBD and City Bowl property markets. While sales volumes were down compared to the mini-boom 2013/14 period and price growth slower, it was nonetheless a very active year according to Ian Slot, Seeff’s managing director for the area.
“As we head into what will no doubt be a challenging year for the economy and country, we do so with a still nicely balanced property market across the Atlantic Seaboard, CBD and City Bowl area. Stock levels are still fairly tight and we are still seeing good demand,” adds Slot.
Last year’s sales for the whole area amount to about R6,7bn, equating to just over a third of the value of all residential sales for the Cape metro, and there is no doubt that this residential area stands quite apart in terms of its resilience.
CBD and City Bowl: R1,8bn sold
For the CBD and City Bowl areas alone, some 582 units worth of almost R1,835bn were recorded on Propstats for the 2015-year. The average sales price was about R2,95m. Sellers are on average still getting about 95% of the asking price and some 40% of recent sales were still at just about or full asking price.
The CBD, one of the most exciting apartment markets, ended on about 200 units sold to the value of just under R423m, at an average price of R2,1m, almost twice as much as the 2010-average of R1,2m. Notably, where almost nothing sold above R2m five years ago, over 40% of last year’s sales were above this price level, a clear demonstration of the demand and value growth in the area.
“Moving across to the Atlantic Seaboard area that stretches from the V&A Waterfront and Mouille Point area across to Camps Bay, we see a market that is almost without parallel in terms of property values,” notes Slot. Sales for the 2015-year amount to some 676 units sold for a total of just over R4,9bn at a phenomenal average price of just over R7,4m. The average is also almost 70% higher than what it was five years ago.
While the market has tightened over the last year, Slot says that sellers are on average still getting just over 90% of their asking prices although this varies considerably. This year though, sellers may well see more resistance if their price expectations are out of line with the market, he adds.
Despite the overall slow-down in activity compared to 2013/14, most areas have seen property values grow year-on-year at inflation-topping rates, in some instances as much as 13%-22%.
The top five suburbs of the Atlantic Seaboard – Clifton, Camps Bay, Bantry Bay, Fresnaye and the V&A Waterfront – now all command entry level prices in the upper millions. Clifton has seen its average price rise by R5m from R14,75m in 2010 to R19,75m, a phenomenal 45% increase in just five years according to Lance Cohen, luxury market specialist and director of Seeff Atlantic Seaboard.
Where the average price of seaside apartments in Clifton only reached about R80,000/m² five years ago, it now comfortably reaches R100,000/m² to R120,000/m², says Cohen.
The highest price paid for a house in the suburb is also up from R60m five years ago for a property in Nettleton Road (the most expensive street in the country on average) by a whopping 85% to R111m (incl. VAT). New über-luxury houses with breath taking sea views, set high up in Nettleton Road are now priced up to around R200m, he adds.
Camps Bay prices, too, have skyrocketed. In 2010 the average price in the suburb was R6,5m. By 2015, it was some 50% more at just under R10m. The highest price reached in Camps Bay in 2010 was just R14,5m for a home in Bakoven. In 2015, some 11 homes sold for upwards each of R20m to a highest price of R32m, almost double the highest price achieved just five years earlier. New über-luxury houses with fabulous sea views are now priced to just over R40m.
Sea Point and Mouille Point, two high-density seaside suburbs characterised by a large number of apartment blocks, too, have seen enormous value growth since 2010, says Slot. In 2010, the average price of a Sea Point apartment close to the beach was around R2m. By 2015, it had more than doubled to R4,2m.
The highest price paid in 2010 for an apartment on Beach Road was R8,4m. Today, apartment prices here can reach R15m to R20m – more than double in just five years.
The position is similar in Mouille Point. Five years ago, you could still find an apartment for around R3,2m on average. Today, you are looking at around R7,8m, a staggering 144% higher, says Slot. Top-end apartments on the ocean can now reach prices of up to R20m and about R38m to R40m at the very top end of the market.
The V&A Waterfront Marina is yet another area where prices have risen to the extent that the entry level price for a two bedroomed apartment is now upwards of R8m on the canals and as much as R15m on the Front Yacht Basin.
Where top-end R20m-plus sales in 2010 amounted to only about 18 sales, worth just over R700m across the Atlantic Seaboard, this practically doubled last year with some 37 sales recorded to the combined value of over R1,2bn.
The highest prices achieved over the last year for houses include R70m and R111m for luxury villas in Clifton, both sold by Lance Cohen, and R33m for a beach apartment in Bantry Bay, sold by agents, Adrian Mauerberger and Cecily Sher, also from Seeff.
This year is also off to a good start for the top end of the market with Lance Cohen already concluding top end sales such as R36,5m for a luxury seaside apartment in Clifton.
Slot expects the smart money to continue hedging their bets on Atlantic Seaboard and City Bowl property. Aside from local buyers, the area is now attracting quite a bit of interest from upcountry buyers from as far afield as KwaZulu-Natal and Johannesburg, especially with a single Joburg buyer investing over R170m in two top-end properties (Clifton and Fresnaye), both sold by Cohen over the last year.