Top-end buyers are back and buying
Fin24

Top-end buyers are back and buying

2014-06-23 15:08

Cape Town - For the first time in years, sellers have much to smile about, according to Seeff chair Samuel Seeff.

While the country’s economic news remains somewhat bearish, news on the property front is bullish right now.

On the back of a significantly better mood in the residential market, price records are once again tumbling as trophy and top-end home buyers turn on the heat.

Seeff said market confidence is up and top-end buyers are back and buying.

We have seen more cash coming into the market over the last year and, while still no boom, the top-end is showing some bounce back.

"Across the board, our luxury areas are reporting significant growth in turnover and record sales in almost every upper end area," said Seeff.

"Our average selling price for this year to end April for top-end areas such as Cape Town’s Atlantic Seaboard and Southern Suburbs, Sandton and Pretoria East in Gauteng and KZN’s Dolphin Coast is up by 40% to almost R3.5m from R2.5m last year.

Cape Town's Atlantic Seaboard and City Bowl

Cape Town’s Atlantic Seaboard and City Bowl lead the pack with about R1bn in real estate sales over the last year, said managing director for the area, Ian Slot.

Activity includes several high value sales ranging from R20.5m for a villa in Bantry Bay (Top Road) to a record price of R42.5m for a 600m² luxury apartment in Bantry Bantry.

The previous highest price was R34.5m, paid in June 2013 and R55.86m for a luxury Clifton villa – both of which are the highest prices achieved this year.

At the V&A Waterfront, Seeff sold a 255m² luxury apartment in Palgrave that overlooks the One & Only for just under R24m (incl. VAT), one of the highest prices ever paid for an apartment here.

Cape Town's Southern Suburbs

Southern Suburbs managing director Andy Todd said that the agency has already clinched several high value sales in Constantia of up to R17m (Brommaert Avenue).

In Bishopscourt sale prices were up to R20m and R24m for luxury homes in Canterbury and Kirstenbosch Drives respectively.

Sandton

Seeff Sandton too has seen a good pick up at the top end of the market with several high value sales over the last few months, said managing director, Charles Vining.

Aside from wealthy locals moving into and up in the suburbs, buyers from oil-rich African states such as Angola, Nigeria and the Congo continue to home in on what is billed as the continent’s richest square mile.

Pretoria

Pretoria East principal, Gerhard van der Linde, saif that the market in the exclusive suburbs of the area is very active.

Here, Seeff recently sold a stunning 1 600m² residence in Baileys Muckleneuk within days of listing it for the record price of R10.5m.

The previous highest price here was R9.3m, paid in 2008.

"We had been working with a very discerning buyer for a few months and when the property came onto the market, we knew it was the right home," he said.

KwaZulu-Natal

KZN Dolphin Coast principal Andreas Wassenaar said that luxury homes in Ballito, Simbithi and Zimbali are once again attracting significant interest.

Here, Seeff has just clinched the sale of a luxury beach house in Zimbali for the record price of R30.9m.

The previous highest sale was R26.5m, achieved in 2007.

The accessibility of the area for wealthy Joburgers especially is driving demand and he said that land scarcity is likely to drive prices up in the near future.

The coastal holiday markets are also seeing a return of buyers, especially Joburgers, said Seeff Plettenberg Bay principal Kevin Engelsman.

Here, Seeff has clinched several high value sales over the last year, including a luxury beachfront home that sold for the record price of R45m.

The previous highest price was R24.5m, set in 2011, for a trophy home in Beachy Head.

Kenton-on-Sea principal, Simon Oliver said that buyers are once again honing in on holiday homes and his branch too recently concluded a record sale at R10.9m.

The previous highest price was R10.6m, set in 2012.

The firming of the market here means that sellers can expect to achieve prices far closer to asking price than was the can for the last few years.

"The trend at the top-end of the market reflects the overall improvement in activity and it is now becoming a sellers’ market in many areas," said Seeff.

"Prices have largely stabilised, even starting to climb in some instances. While the weaker rand has been a bust for the economy it has been somewhat of a boon for property, making it far more attractive to top-end and foreign buyers."

Comments
  • Bruce Law - 2014-06-23 15:57

    Then your troubles will really begin. You have no idea.

  • Barrie Murphy - 2014-06-23 16:14

    Weak rand. A lot of high end buyers, earn foreign currency or in fact foreigners with businesses in SA, perfect time to buy when rand is at all time lows.

      Bruce Law - 2014-06-23 23:26

      But that depends where it goes from here

  • pages:
  • 1