Waterfront’s Dock Road averages R108,000/m2, elevating surrounding values
This is due in part to billions of rand being invested in new developments in Cape Town’s downtown, making the Waterfront and Foreshore attractive residential markets in which to invest, according to Ross Levin, Finella Botes and Lynn Pinn, Seeff’s team for the areas.
The Waterfront’s Dock Road was also recently named the most expensive real estate in the country, commanding an average sales price last year of R108,000/m², according to a recent Lightstone Report.
The Waterfront has experienced sales growth of about 6% this year with property values having just about doubled in the past five years, said Levin.
“In 2011, a two-bedroom apartment in Juliette on the canal sold for R7m at R40,230/m². The same apartment recently sold for R13m at R76,471/m², thus equating to some 86% growth in just five years and yielding a handsome profit of R6m,” said Levin. “On the Front Yacht Basin, a two-bedroom apartment in Penrith sold five years ago for R11,4m (R45,418/m²). The same apartment sold last year for R19m (R87,156/m²), yielding 67% growth and a profit of some R7,6m in just five years.”
Entry-level apartment prices on the Waterfront now range between R7m and R9m and average around R84,020/m², with the top end hitting R140,000/m².
“Canal apartments now command around R75,000/m² for one bedroom and R85,000/m² for two bedrooms,” said Levin. “Front Yacht Basin apartments sell for up to R140,000/m² depending on the apartment and position.”
According to the agents, the overall average listing period is down from 39 days in Q2 2016 to 33 days, while the overall days on the market is down from 124 in 2014 to just 48 days on average this year.
The agents said the highest demand for canal-facing apartments is in the R8m to R12m range and for Front Yacht Basin apartments, in the R15m to R25m range.
The Foreshore boasts a higher average sales price of R3,3m compared to the CBD’s average of around R2,3m. The premium here, say the agents, is attributable to the close proximity to the Waterfront.
Apartment prices on the Foreshore range from around R3,3m for a one-bedroom unit and upwards of R4,2m for a two-bedroom unit.