Atlantic Seaboard bounces back: Luxury villas for R60m, rentals for R75 000 per month | Fin24
 
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Atlantic Seaboard bounces back: Luxury villas for R60m, rentals for R75 000 per month

Dec 24 2018 20:38
Carin Smith

Since July, there has been an increase in property sales in the exclusive Atlantic Seaboard suburbs of Bakoven and Camps Bay in Cape Town, according to Devin de Moyland, area specialist for Chas Everitt Luxury Portfolio.

De Moyland has notched up six sales worth a total of more than R71m in the past five months.

The six homes he sold include five freehold properties at prices ranging from R8.2m to R17.15m and a luxury sectional title apartment at R4.7m. The listing periods ranged from five days to almost two years. Five out of the six purchasers paid cash, and four out of the six are South Africans.

"Earlier in the year, buyers were hesitant due to extreme water restrictions in Cape Town and uncertainty over the government's land expropriation plans. But then we had good winter rains, the land fears subsided, and things began to turn around for property sellers here," comments De Moyland.

"We saw that astute investors were starting to move in and buy up properties, including some that had been on the market for many months, in anticipation of a rise in prices as the supply of homes for sale dwindled and the annual seasonal influx of international buyers gained momentum."

Data by PropStats shows 14 sales were concluded in Camps Bay and Bakoven between July and November this year in addition to the six concluded by De Moyland - one of which was in association with another agency. The figures show that the total value of these 20 sales was around R256m.

Blue flag beaches

According to Seeff Properties, if you have about R20m to R60m to spend, you can find a holiday villa in Clifton or Camps Bay.

Clifton offers beach bungalows, waterfront apartments and luxury villas against Lion's Head, while Camps Bay offers a wide range of options, from apartments to villas. Both areas have Blue Flag beaches.
 
Ian Slot, Seeff's managing director for the areas, says they attract buyers from all over the country, wealthy investors from Africa, and is popular for second homes for UK, German and other European buyers.

For luxury lock-up-and-go apartment living, the waterfront complexes in Bantry Bay and Mouille Point are ideal, according to Seeff agents Adrian Mauerberger and Cecily Sher, provided you are able to spend upwards of R8m to as much as R80m for a super luxurious beachfront unit with a private pool.

Luxury - if you have the bucks

With the pressure on the property market in the Cape and many new developments, the rental rates in the luxury sector of the Atlantic Seaboard is down by about 25% and there is currently a surplus of stock on the market, according to Vivien Adler and Barbra-Ann Briner, Seeff's agents for the luxury sector.
 
Rental rates currently average at around R20 000 to R40 000 per month for a two-bedroomed apartment in new developments. Houses and villas are in the R50 000 to R120 000 per month range depending on the location, size and quality.
 
They recently rented out a top-class luxury apartment in Mouille Point for R75 000 per month.

Ryan Greeff, director of Greeff Christie's International Real Estate City Bowl and Atlantic Seaboard says, while sectional title units remain popular due to their lock and go convenience, there has been some affordability tightening in the bracket above R3m.

The housing segment ranging between R3.5m and R5m has remained relatively buoyant, but with buyers hesitating to spend more than R5m, says Greeff.

He adds that the luxury market (above R10m) has seen buying primarily by foreign buyers. Upcoming areas to take note of as possible investment hotspots are developments in Vredehoek, Higgovale and Oranjezicht, he believes.

cape town  |  money  |  property
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