City Bowl tops the list for foreign property investors

Foreigners continue to invest in Cape property, and February 2015 Propstats figures indicate that foreign buyers accounted for as much as 10.9 percent of recorded City Bowl sales revenues in February 2015, and that the demand is mostly for sectional title units.

“The attraction of the City Bowl is indisputable. Properties here have easy access to the inner city and its nightlife, the Atlantic seaboard beaches and the convenience of MyCiti transport service,” says Mike Greeff, chief executive of Greeff Properties, an affiliate of Christie’s International Real Estate.

“Buyers were from Europe – mainly France, Germany and the United Kingdom. The average selling price of properties bought by foreigners in the City Bowl was R2 754 200. This was an average of 2.6 percent below the listing prices, which indicates an advantageous sellers’ market,” says Greeff.

He says four out of five foreign buyers paid in cash.

“Prices for City Bowl apartments are ridiculously inexpensive when compared to other top coastal destinations. In Sydney, Australia, for example one-bedroom city apartments are priced from around R4.032 million and three-bedroom apartments can cost R44m. A 10 m2 studio in Queens, New York will cost R1.3m, and from there, prices just soar, particularly in uptown city areas.”

He says there is strong demand for rental properties in the City Bowl, making this a lucrative area for would be investors.

“One-bedroom, no frills type apartments are achieving rentals from R7 000 to R10 000,” says Matthew Taylor of Greeff Rentals division. “Parking is not always included as it is scarce in the City Bowl. Add parking to the rent and the price increases by R800 to R1 000. Two bedroom apartments are attracting rentals ranging from around R11 000 to R15 000, but some popular blocks achieve up to R20 000 for a two-bedroom unit.”

Propstats figures for property activity recorded on the Atlantic seaboard, during February 2015 indicate that foreign buyers were responsible for 26.9 percent of the total sales revenue in this region.

“The average selling price attributed to properties bought by foreigners was R17 510 714 which was 7.7 percent below the average listing price,” says Greeff.

He says that buyers on this part of the coastline were from Europe and elsewhere in Africa.

“Impressive prices were recorded for sales to foreigners on the Atlantic seaboard, including R22.75m, paid by a Danish national for a home in Camps Bay, R36m paid by a Nigerian for a property in Clifton and R78m paid by yet another Nigerian buyer for two adjoining apartments in Mouille Point,” says Greeff.

“Cape Town continues to be a top destination and the rand is still at a very attractive rate for anyone earning US dollars, pound sterling and euros among other bullish currencies,” says Greeff.

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