The Atlantic Seaboard has seen a small shift in its residential property market, with the freehold sector ceding a portion of its market share to the sectional title sector.
According to Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic Seaboard and City Bowl CEO, this is only partially due to the market slump with several other factors contributing. “A growing number of first time buyers, increased demand for lock-up-and-go convenience, and on-going densification in response to the growing demand for property are all driving the expansion of the sectional title market,” added Miller.
Miller said that the development of sectional title properties across all market segments Is not only changing the property landscape of the Atlantic Seaboard, but has been a driving force in the market’s consistent strength. “Although we are seeing the most activity in the lower and mid-market sectors, it is at the top end of the market that we have seen the most significant growth and transformation in recent years,” Jolene Alterskye, Sectional Title Area Specialist for Lew Geffen Sotheby’s International Realty, added.
Rapid sectional title development has catapulted Bakhoven (among other suburbs) from sleepy extension of Camps Bay to a scenario where it commands the highest rentals in South Africa and sets the bar in terms of sales prices achieved on the Atlantic Seaboard.
The fact that Bantry Bay has also benefitted greatly from development of its sectional title market was confirmed by Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, who said that although Clifton apartments have always commanded the highest prices and best return on investment, the pole position is now shared with Bantry Bay. But despite Bantry Bay sneaking up on Clifton, the suburb still commands the highest prices – 11 of 14 sales during the past year realised an average sale price of R15,5m with only three units selling for less than R3m.
Photo: Three-bedroom, three-bathroom penthouse in Green Point on the market for R19,25m