Sky-high Property Prices On Ct's Atlantic Seaboard
Hype around the recent sale of a home in Nettleton Road in Clifton for R110 million and the listing ofCamps Bay property for R450 million has sent sellers in the area into a frenzy, prompting one to turn down a full price offer of R65 000 per square metre on his Clifton apartment and hike the price to R75 000 per square metre.
This apartment in Clifton, Cape Town, has two bedrooms and a patio. It is on the market for R9 million - click here to view.
This is according to Dennis Hamer, owner of the Harcourts Atlantic franchise, who says in this instance, the seller's argument is that there are currently only a handful of units on the market in Clifton for less than R10 million.
Hamer says the seller believes he will achieve the higher price this summer and that his expectations are not unrealistic - and with only 269 sectional title units in total in Clifton, the market might just prove him right.
Meanwhile, a ‘bargain’ property in Nettleton Road is on the market for R39 million, a price that must be seen against land in the same street that is on the market for R55 million,” says Hamer.
“Prices in this area are being driven by the limited supply of land between mountain and sea and the construction of showpiece homes to rival those of other famous coastlines.
“Similarly in Camps Bay, where last year one could still find a solid home for around R7 million, there are now few full title homes available under R10 million, and developers are keen to acquire those that do become available for redevelopment into upmarket sectional title complexes with two to four units,” he says.
This two bedroom apartment in Green Point, Cape Town, is selling for R2.2 million - click here to view.
Hamer says another illustration of the current market heat all along the Atlantic Seaboard is the recent sale of a redevelopment stand in Green Point for R14.5 million, which was originally listed at R10.5 million.
“And even one bedroom apartments in Sea Point and Green Point are now frequently selling for more than R2 million, which equates to R30 000 per square metre. In fact, a 10-year-old apartment in Green Point recently sold for R58 000 per square metre.”
He says as for entry-level properties along this coastline, the most affordable bachelor apartments are now priced at around R1.2 million in Sea Point and R4.5 million in Clifton.
“In other parts of Cape Town, the same money can buy a substantial property, so clearly, buyers on the Atlantic Seaboard are also willing to sacrifice size for location and lifestyle, and that is another factor that continues to put upward pressure on prices in this area,” says Hamer.