The super-luxury R20 million-plus sector of the Atlantic Seaboard market is offering excellent opportunities right now, says Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl.
With just four sales for this year, as at June, above R20 million, the market has fallen to the lowest level in ten years. Meanwhile new listings in Clifton, Camps Bay, Fresnaye and Bantry Bay is up to about 200 properties.
With plentiful supply and flat price growth over the last three years, Samuel Seeff, chairman of the Seeff Property Group says this sector is presenting one of the best buying opportunities in over a decade.
Whereas the low- to middle-income sectors are seeing a notable uptick in activity on the back of pent-up demand, the top end is heavily influenced by sentiment which is at an all-time low according to the latest RMB/BER Business Confidence Index (BCI).
Levin says that during the boom years of 2016-2017, the market was doing about five sales per month above R20 million and prices reached R80 million to R120 million in Clifton. Last year’s highest price reached just R60 million in Fresnaye and this year so far, just R34 million in Camps Bay.
That said, Seeff still managed to conclude high value sales of R26 million at the Waterfront and three sales in Camps Bay between R15 million and R20 million.
The upper sector of the market has seen no real price movement over the last 2-3 years, and it is arguably one of the best periods for “bargain hunting” that we have seen in the last decade. Levin says further that there are now many new listings not seen before and many sellers are motivated to take lower offers.
The time to invest here is now. He points out that this has been the top performing real estate belt for well over a decade. Property values rose faster than anywhere else and doubled in the five years between 2012-2017 at the peak of the last mini boom.
The location and uncompromised views remain the biggest drawcard. Although it is still early days under Level 3, Levin says there are encouraging trends emerging, in particular a renewed interest from semigration buyers.
Upcountry buyers are considering the Cape Town lifestyle with the mountain and sea as an alternative to emigrating. People are not as restricted by their businesses as we move to a more technological world, and if they need to be at home, they want the mountain and sea on their doorstep.
This, he says further, is where the current high-end interest is coming from and will hopefully drive that market going forward. This is one area where history has shown that if you take a long-term view, you can reap rewards when the market cycle ticks up again.
While we are seeing a high quantum of viewings from the initial pent-up demand, ultimately, he concludes, buyers want value and there is plenty to be had here right now.
Photographs enclosed – new listings not seen before on the market
1) Camps Bay – R65 million for a spectacular 8-bed villa with the Twelve Apostles as a backdrop and mountain and ocean vistas, plenty of extras including staff accommodation and an elevator for easy access to all levels
https://www.seeff.com/results/residential/for-sale/cape-town/camps-bay/house/64001/
2) Fresnaye – R59 million in sought after Ocean View Drive with spectacular views, newly renovated with an infinity pool, 5 beds and extras such as a games room, gymnasium, laundry, temperature-controlled wine cellar and a Japanese themed massage room
https://www.seeff.com/results/residential/for-sale/cape-town/fresnaye/house/60424/
3) Bantry Bay - R49 million for a spectacular ocean view villa over three levels with a rim-flow pool, with 3 beds, direct lift access from the double garages and plenty of extras including staff accommodation
https://www.seeff.com/results/residential/for-sale/cape-town/bantry-bay/house/70955/
4) Fresnaye – R24.95 million – ocean and mountain vistas for this stunning 4-bed villa with extras such as a movie theatre and staff accommodation
https://www.seeff.com/results/residential/for-sale/cape-town/fresnaye/house/65341/
5) Sea Point – R22.5 million for a stunning 500sqm apartment with direct lift access, 4 beds and more. It is on the market for the first time ever. Revamped complex with only three units and a communal pool.
https://www.seeff.com/results/residential/for-sale/cape-town/sea-point/flat/72101/