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Thursday Apr 13, 2017

Atlantic Seaboard property demand continues

Demand for residential property on the Atlantic Seaboard in Cape Town has seen phenomenal price growth in the past few years, say property experts.

Pam Golding's Basil Moraitis says the average property price in Camps Bay escalated from R3.75 million in 2010 to R14.1m this year.

Moraitis says the surge in prices has spread to other Atlantic Seaboard suburbs.

He said Lightstone data estimated a median property price in Clifton at R17.65m, and prices in Bantry Bay went from R10.25m in 2010 to R17.5m last year. Apartments in Clifton are being marketed around the R140m mark.

Moraitis said factors driving prices in the area included the unrelenting demand for property in this part of Cape Town.

"It has become somewhat of a status symbol to own property on the Atlantic Seaboard, and many buyers are drawn to the trendy, cosmopolitan lifestyle," Moraitis said. "Furthermore, there is no geographic space to expand, because of the mountain and the sea, and this places an added premium on the stock availability."

Moraitis said demand for property along the Atlantic Seaboard showed no sign of ebbing, especially as Brexit and the exchange rate make it possible for overseas investors to buy in an area with a lifestyle comparable with Europe and other popular international destinations.

He said investors looking for properties close to the Waterfront wanted to be part of this burgeoning precinct located within walking distance of the city centre.

"They want to be near the V&A Waterfront, the revitalised Culemborg area near Woodstock and the CBD, with its range of restaurants, clubs and art galleries.

"The mixed-use Silo District, which will house the Zeitz Museum of Contemporary Art Africa, will add to the allure of these areas. Living close to the city centre has the added benefits of a shorter commute to work."

Moraitis said prices of sectional title units in the Waterfront had increased nearly 50% in the past five years from an average of R6.7m to R8.875m last year and an apartment at the Water Club recently sold for R16.7m, R128 408 a square metre.

Seeff Atlantic Seaboard agent Lance Cohen said the suburb of Fresnaye had experienced a rally in demand for freehold property, which boosted the full title-selling price by 76% in just four years.

Cohen said any property below the R20m mark was snapped up quickly.

He said where full title properties in Fresnaye sold for an average R7.2m in 2012, the price now stood at a phenomenal R14.923m, outranked only by Clifton and Bantry Bay.

Cohen said attributing factors included the location against the slopes of Lion's Head that allowed for fabulous views.

"The lovely palm-tree lined avenues, all with a bit of French flair reminds of the French Riviera, and you are on the doorstep of everything that the Atlantic Seaboard and City Bowl offers including excellent schools."

He said families investing in the area were in the 36 to 49-year age bracket.

"An agent has for example just listed a 3 247sqm estate with the original and first manor house in Fresnaye for a record price of R185m," Cohen said.

"The magnificent property boasts panoramic mountain and sea views and offers a grand lifestyle, quite unparalleled on the Atlantic Seaboard.

"It is a showcase of why the Atlantic Seaboard is in such demand and why buyers and investors will pay such high prices. The location is superb on a corner plot in Ave Alexandra against the slopes of Lion's Head, one of the most sought-after addresses in the country."

Joseph Booysen
Business
Cape Argus

 
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