Atlantic Seaboard, City Bowl notch up R2bn in sales in 1Q2016
So far, the Atlantic Seaboard and City Bowl areas seem to have shrugged off the country’s economic woes and interest rate hikes. Sales in the first quarter of this year are already at just under the R2bn mark.
This, despite a number of economic setbacks including three interest rate hikes since the start of summer and further hikes in property and personal taxes along with higher capital gains tax (CGT) rates. The latter in particular is set to impact property sellers and buyers here according to Ian Slot, Seeff’s managing director for the areas.
These top end, mostly cash markets with wealthy buyers tend to be able to withstand economic fluctuation and interest rate hikes, but this is not to say that the market is immune, says Slot. “We are currently looking at some serious economic challenges and to see the market holding steady thus far, is very encouraging.”
The sales data for the first quarter shows that prices are still holding firm, good news not just for sellers, but also for property owners. For buyers too, this reaffirms their confidence in investing in the area.
Slot says that as predicted, the bulk of the sales were below the R10-15m price band.
There has though been good activity at the top end of the market with a number of high value transactions concluded on the Atlantic Seaboard over the summer to date, ranging to R34m and R45m in Bantry Bay and as much as R70m in Clifton, all Seeff sales.
Overall, it is still the Atlantic Seaboard where the bulk of the sales activity is taking place with the mid-market areas of Sea Point, Green Point and surrounds dominating in so far as the number of units sold.
The top five suburbs – Clifton, Camps Bay, Bantry Bay, Fresnaye and the Waterfront – dominate the rand-value, accounting for almost 70% of the value of all sales, amounting to just over R990m for the first quarter so far.
(Top photo: A luxury home in the Little Glen Views development in Camps Bay recently sold by Seeff for R13,05m)