Off-plan apartment sales boom amidst a shortage of stock on the Atlantic Seaboard
There seems to be little stopping the demand for apartments on the sought-after Atlantic Seaboard strip according to Seeff’s sectional title agents, Adrian Mauerberger and Cecily Sher. The agents have just concluded the complete sell-out of ‘50 Upper Rhine Road’, an off-plan 9-unit boutique development planned for Sea Point in just 10 days. It yielded over R58 million in sales and a highest price of R16.25 million for a three-bedroomed penthouse with roof terrace. The demand for apartments is such that we cannot keep up and hence we see that new developments, even those priced in the R3 million-plus luxury sector of the market are selling like hotcakes, say the agents. While this particular sell-out was in the suburb of Sea Point, the story is very similar for all of the suburbs, from Green Point right through to Camps Bay, say the agents. The development boom comes amidst a general upswing in the demand for apartments on the Atlantic Seaboard. Where there was almost no market for new developments some four to five years ago, there is now almost no price too high as is clearly demonstrated by the sale of a three-bedroomed penthouse for R16.25 million. Mauerberger and Sher also point out that sellers are now seeing fairly quick turn-around times with sales concluded within anything from a day to under 30 days and just about every second recent sale for close to or full asking price. On the whole, we are still seeing a very active market with very favourable selling conditions, especially as we head into the busy summer season. Apartment sales on the Atlantic Seaboard reached a peak last year with about 585 units sold to the combined value of about R2.466 billion at an average price of R4.2 million. This year, some 403 units with a combined value of R2.061 billion has already been concluded at an average price of R5.1 million, a phenomenal 21% up from last year, add the agents. If you unpack the data a little further, it is also evident that buyers are willing to pay ever higher prices. Last year for example just on 50% of all apartment sales fell into the price band of R3 million and above. This year, well over half of all sales were above this price level. While it has been predominantly residential buyers investing here, we have seen a return of holiday and investment buyers to the area, say the agents. Sea Point heads the leader board in terms of luxury apartments sold above the R3 million price band with some 71 units sold at an average price of just under R5 million and a highest price of over R16 million as noted. Neighbouring Mouille Point has clocked up 26 sales at an average price of R7 million. In Green Point, some 22 apartments have sold at an average price of R5.3 million ranging to a highest price of just under R14 million. In Camps Bay, about 22 apartments have sold at an average price of R6.7 million. Top end apartment sales in Fresnaye total about 13 units at an average price of R6.1 million and in Bantry Bay, some 12 units have sold at an average price of almost R12.7 million and a highest price of R33 million for a beach apartment sold by Mauerberger and Sher. The agents also note that they expect good visitor numbers to the area over the summer, both from upcountry areas such as Johannesburg and visiting foreigners and believe that interest in apartments are set to peak. Both locals and foreign buyers are likely to be encouraged that they are able to find excellent value right now given the significant weakening of the rand, against the dollar alone it is down by almost 30% from last year. We see this as a very good time for sellers looking to cash in, but the good times are unlikely to last forever. Contact Seeff Atlantic Seaboard, Adrian Mauerberger and Cecily Sher on 082 826 6454/072 968 3280 or visit www.seeff.com. Figures quoted are drawn from Propstats
