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Johannesburg - It appears that wealthy investors still have plenty of appetite for big-ticket properties with prices in some of SA's swankiest suburbs still rising at double-digit rates.
This is according to the latest data from real estate portal South African Property Transfer Guide (SAPTG).
The Atlantic seaboard suburb of Camps Bay saw average house prices surge by 56% over the past year to R7m in March 2008, up from an average sales value of R4.48m in March 2007.
That places Camps Bay as SA's most expensive suburb in SAPTG's monthly top 10 survey of highest average sales value achieved.
SAPTG's data, which is sourced from the Deeds Office, applies only to property transfers of up to R20m.The survey is divided between suburbs were 10 or more sales are achieved per month and suburbs with less than 10 sales.
The Cape Town suburb of Constantia ranked second after Camps Bay as the highest-priced residential neighbourhood in SA (10 or more sales) with an average sales value of R 5.95m. Posh golf resort Zimbali on KwaZulu-Natal's north coast claimed third spot in March, with an average sales value of R3.65m. That's growth of 21% in 12 months.
In the "less than ten sales" category, Cape Town again boasted the highest priced suburb in SA, with Fresnaye on the Atlantic seaboard taking top slot with an average sales value of R6.9m.
Not hit hard by credit act
That's followed by Gauteng's exclusive Hyde Park where properties changed hands at an average R4.78m in March this year 17% up from the average price tag of R4m achieved in Hyde Park a year ago.
SAPTG's house price trends for top-end suburbs are in stark contrast to what is happening in middle-income areas. Standard Bank's latest data shows that median house prices in SA dropped by 5.2% in the year to March 2008 from R580 000 to R550 000.
That's the first time in eight years that median house prices have actually dropped in nominal terms. And property economists expect the overall market to stay in the doldrums for at least the next 12 to 18 months. More so, if interest rates are hiked yet again later this week.
Estate agents confirm that luxury suburbs have been far less affected by higher interest rates and the National Credit Act (NCA) than the middle and lower priced end of the market.
Laurie Wener, MD of Pam Golding Properties (PGP) in the Western Cape, says top-end suburbs remain active despite the general slowdown. PGP recorded a number of record sales in the past three months on the Atlantic Seaboard. Many of these sales are going to cash buyers who are not affected by higher rates and the NCA.
Recent record sales deals include a penthouse apartment in Clifton for R48m, an apartment at the V&A Waterfront for R22.5m and a three-bedroom home in Camps Bay for R16.5m. Wener says foreigners are still showing a keen interest in the area, but at least 60% of sales are going to South Africans - both Capetonians and upcountry buyers.
Jared Gottschalk of the Alliance Group says they recently sold a "moderate" Camps Bay beachfront property to an upcountry buyer for R44m, proving once again just how strong demand for prime properties in this area of Cape Town still is.
- Fin24