select
|

Property performance powers ahead

Stellar returns on selected Atlantic Seaboard properties in Cape Town have at times outstripped the performance of some competing local asset classes, returning positive increases against international currencies including the US dollar and euro, Pam Golding Properties research reveals.
 

A super-luxurious R15million, two bedroom apartment in a sought-after Mouille Point beachfront block (under exclusive mandate to Pam Golding Properties) exemplifies how Atlantic Seaboard sectional title properties can hold their own as a superb investment.

Over the past decade, prices of sectional title properties have risen by 151.6% in Mouille Point (median price R3.12m in 2015) and by 133.8% in the V&A Waterfront (median price R9m in 2015).
 
This is nearly double the 80.9% increase in the consumer price index during the same period. However, the increase in property prices does not quite match the performance of the FTSE/JSE 40 (178.6%) during the same period - but has achieved a respectable 151% in Mouille Point and 138% in the Waterfront.
 
During the past five years, however, the increase in sectional title property prices in Mouille Point has outstripped both the FTSE/JSE 40 and the consumer inflation rate. In contrast, the increase in prices in the Waterfront fell short of the rise in the FTSE/JSE 40, but exceeded the increase in consumer inflation.
 
Trends underpinning the performance of Atlantic Seaboard sectional title properties include the prime location for work and leisure, seeking a rand hedge, densification and growing numbers of first time buyers, say Pam Golding Properties Mouille Point and Waterfront area specialists, Paul Levy and Mariel Burger.
 
When comparing the performance of Atlantic Seaboard property prices in various major currencies, it is clear that repeated bouts of rand weakness against both the euro and the US dollar have eroded some of the increases in local house prices over the past decade.  Nonetheless, these have continued to remain in positive territory despite the depreciation in the local currency, say Levy and Burger.
 
In Mouille Point, house price inflation was 25.55% in dollars and 40.8% in euros, versus 151.6 % in rands. On the Waterfront, inflation was 16.6% (dollars), 30.8% (euros) and 133.8% (rand).
 
“This clearly demonstrates that investment in properties in these locations has returned better results than had the investor elected to retain deposits in dollars and euros over the same period.”


Table 1: Over the past decade, Mouille Point and V&A Waterfront sectional title price increases were well above the consumer inflation increase, despite FTSE/JSE 40 outperformance.


Table 2: From 2010-2015, Mouille Point sectional title property price increases outstripped the FTSE/JSE 40 and consumer inflation.


Table 3: Atlantic Seaboard property price increases remain positive, despite rand weakness against the euro and US dollar eroding some gains, (Growth allows for depreciation.)

 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 May 2018
      Extreme weather appears to be the new normal, evident by the volume of insurance-related disputes reaching the industry watchdog’s desk. To avoid a situation in which your insurer refuses to pay up, you should proactively ensure that your home is well-maintained and ready for whatever winter has in store.
    • 22 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 22 May 2018
      According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, dealing with some sort of neighbour dispute is an unavoidable part of life unless, perhaps, you choose to live on a remote small holding for the rest of your life.
    • 22 May 2018
      Buyers feel that they are getting value for money in the Northcliff area without having to compromise on aesthetics and amenities
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    • 21 May 2018
      With sectional titles growing in popularity, an increasing amount of homeowners simply do not have the garden space to install a tool shed in their backyard.
    • 18 May 2018
      Home improvements are a great way to add value to your property, but not all of us have bottomless pockets for a full-on renovation. Lucky for us, there are plenty of affordable DIYs that can spruce things up over a free weekend.
    • 18 May 2018
      The need for large office spaces is slowly eroding as more and more employers choose to allow their staff to work remotely. As a result, the home business model has grown in popularity, with many new entrepreneurs choosing to start their business from home rather than in a business district. But, what are the legal implications of operating a business in a residential area?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK