Apartment prices sit within the R6m to R10m bracket, with top-end properties breaching R100m.
This is according to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, who said in 2007 fewer than 10 apartments changed hands in Mouille Point and the average sale price was R1,76m.
“By the end of 2016, the average apartment price had risen to R7,32m with Propstats’ records showing 42 sales for the year with the highest price achieved R35,25m on a property that spent just 30 days on the market,” he said, noting that since the start of 2017 14 apartments have already been sold at an average price of R8,9m with an average listing time of just 39 days.
The price growth between 2007 and 2017 represents a compound annual growth rate of 15.32%.
According to Richard Todd, sales agent in the V&A Waterfront and Mouille Point for Lew Geffen Sotheby’s International Realty, the difference between asking and sale price has narrowed significantly.
“In 2010, the difference between the marketed price and eventual sale price was a respectable 10.9%, but by 2016 this figure had dropped to 4.8% with the gap reducing even further this year to 2.9% in the first quarter,” he said. “Market data reveals that approximately 70 property transactions were recorded annually in the suburb over the past four years, with 2016 sales amounting to just less than R355m. About 90% these sales were below R10m, and of the remaining 10% were properties priced above R20m.”
Todd said the average price per square metre in the suburb ranges between R74,000/m² to R87,547/m².
While the suburb is suited to investors, boasting an active rental market, investors should take note to thoroughly screen potential tenants. According to the recently released TPN Residential Rental Monitor, just 55.5% of tenants in the R25,000+ per month category pay on time. Thankfully, however, for investors in Mouille Point, Western Cape tenants are the best payers, with more than 88% in good standing – Eastern Cape is second (84%), Gauteng is third (81%), and KwaZulu-Natal is fourth (80%).
Another feather in the cap of the Western Cape is the fact that rental escalations have risen by more than 12.5% year-on-year; compared with Gauteng’s 5.47%, the national average of 4.71% and KwaZulu-Natal’s 2.1%.
Photo: The past decade has seen Mouille Point transformed from the poor relation on the Atlantic Seaboard to the Platinum Mile, a highly sought-after beachfront suburb