Accurately priced apartments in Atlantic Seaboard suburbs close to the Cape Town city centre are still selling, but the market by volume has slowed since March.
This according to Brendan Miller, Principal of the Atlantic Seaboard office of Lew Geffen Sotheby’s International Realty, who said: “The biggest market driver on balance still seems to be semigration and official student accommodation, as well as parents looking for compact units that will both see their children through their tertiary studies and offer solid returns when it comes time to sell.”
According to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty the most active market segment has narrowed to R10 million and below across all suburbs in the area but in areas closer to the CBD in narrows even further to below R7m. “Properties priced correctly sell quickly but sellers with high expectations are likely to see their properties linger,” he added.
In Lightstone’s latest reports the median price for sectional title units in Sea Point is R2,4m, while Green Point’s median is slightly lower at R2,1m. Miller said that one, two and three bedroom apartments are in demand, and units in the R3m to R6m price bracket are most popular in these two areas.
“However, any property that is put up for sale above market value is bound to take longer to sell. Buyers are looking for value for money and they are doing their homework before they set out to view apartments.”
Geffen concluded that buyers need to do their research and compare units for sale before making a decision, sellers must take care to attach a realistic market value to their properties and developers should suss out the competition to ensure their value offering is within buyer parameters.
Top photo: The market sweet spot – two and three bedroom apartments are available in the newly refurbished Warwick Mansions in Green Point. These apartments are priced between R5,1 million and R6,595m.