These Century City complexes are showing greatest price appreciation
Cape Town’s Century City has experienced a 16% growth in freehold property prices and up to almost 16% growth in some sectional title complex prices in the past year. This is according to Helga Clemo, MD for Seeff Century City, who has worked in the suburb for 11 years, and attributes this to the shortage of available land and its ideal location.
“Besides the fact that Century City is centrally located to all major areas without the overcrowding of the CBD, has direct access to the N1 highway and is just 15 minutes away from the city centre, Cape Town International Airport and multiple popular beach locations, there will also come a point in the near future when no new development would be possible anymore and this will lead to a decrease in stock, making property even more sought after,” she said. “While Century City is only a 250ha suburb, more than half of the land is occupied by canals, nature reserves and commercial properties. The remaining land boasts a whopping 2,958 residential properties of which 77.2% are made up of sectional schemes and the remaining percentage of freehold.
“Recently completed developments such as Mayfair Gardens, Manhattan Quarter and Palme D’or have added another 249 properties to this mix and further developments set for completion in the next year include Water’s Edge (comprising 144 apartments on the canal with views of Intaka Island), Palm Brook (comprising 52 apartments in the latest phase of the Oasis Luxury Retirement Resort) and Axis that will offer 83 luxury apartments with marvellous views.”
According to Clemo in 2015, 324 sectional title units sold at a combined sales value of R766,500,000 and 24 freehold units sold at a combined sales value of R69,915,000. Some 93% of the sales for that year were sectional title at an average value per unit of R2,365,740; the average freehold fetched R2,913,125.
In 2016, 168 sectional title units sold at a combined sales value of R395,000,000 and 27 freehold units sold at a combined sales value of R91,280,000. The sectional title sales still greatly outweighed the freehold sales in unit value, but the average sales price for apartments has remained roughly the same at R2,351,190. Freehold values increased to an average of R3,380,740, which is a 16% boost in just a year.
“Although the average sales value of sectional title has seen no growth, investors are still receiving high capital gains as complex-specific growth has been high,” said Clemo. “Some complex averages include Villa Italia that has grown from R1,919,166 in 2015 to R2,095,238 in 2016 (9.17% growth), Knightsbridge which has grown from R2,148,055 in 2015 to R2,468,571 in 2016 (14.92% growth), Bougain Villas has grown from R1,647,857 in 2015 to R1,878,636 in 2016 (14% growth) and The Island Club from R2,357,300 in 2015 to R2,733,925 in 2016 (15.98% growth).”
Clemo adds another strong indicator of the investor’s market in Century City is that 63% of sellers in 2016 owned their property for less than five years, indicating that buyers resold their properties for a quick profit.
Top photo: This apartment in Bougain Villas is for sale by Seeff for R2,550m. It has a large balcony overlooking a canal, two bedrooms, two bathrooms and two basement parkings. It is lockup and go and located in a 24-hour manned security complex. The complex boasts communal gardens with play areas for children, an outdoor pool and clubhouse. Contact Seeff Century City on (021) 200 8474 for more