Premium prices paid for V&A Waterfront properties

High demand for property at the V&A Marina in Cape Town has continued to push prices up, making these homes some of the most expensive per square metre in the country, says Susan Watts, Broker/Owner of RE/MAX Living.  

“The luxury apartments blocks and penthouses are ideally positioned in the Waterfront precinct, which is one of the most visited attractions in Africa. As the saying goes, location, location, location, and there are few other locations that offer more. These properties are within walking distance to waterfront shopping, as well as entertainment and dining amenities. All of this has added to the allure of these homes among both foreign and local buyers alike,” says Watts.

She adds that with prices in the area continually climbing many buyers have purchased apartments on the front yacht basin as an investment and not just a permanent residence. “Property pricing is closely linked to demand and there is little sign of the demand for property at the Waterfront slowing down anytime soon.  Aside from the apartments proximity to the Waterfront, One&Only and the Cape Grace Hotels, lifestyle offering and tight security have also been drawing cards that have boosted the properties appeal,” says Watts.

According to Vangelis Doucas, Sales Associate at RE/MAX Living, front yacht basin apartments are the most sought-after in the Waterfront, however, canal properties are also in high demand and offer investors more value for money.  The apartments range in price from around R5 million to over R60 million, depending on its position, size and features. Generally, the prices of the front yacht basin homes are between 15% and 20% more on average than the canal-facing apartment, although both options are excellent investments which offer returns that outstrip inflation.

“It is unlikely that property in the Waterfront precinct will ever drop in value due to the fact that there is very limited residential space in the area. There is only a limited number of properties available to investors and restricted space for further development, which means residential property in the precinct will remain a rare commodity,” says Doucas.

He notes that while in the past it was mostly foreign buyers who were purchasing luxury apartments at the Waterfront, the number of foreign investors has been steadily diminishing due to various global political circumstances. “Only around 10% of buyers are from overseas, while the majority of purchasers have been local buyers who are seeing the area as an investment opportunity. A large percentage of the buyers are executives aged between 30 and 50 years old and newly-wed couples from around the country who want to be in the hub of Cape Town. Many of the buyers have businesses based in Gauteng, but choose to live in Cape Town and commute,” says Doucas.

He adds many investors who do not live in the apartments on a permanent basis, often make them available to foreign travellers on short term leases. “International tourists want to stay near to the Waterfront and are willing to pay premium prices for the privilege. Short term rentals can generate a substantial income for owners, particularly in the busy holiday seasons. The apartments are secure and surrounded by world-class amenities, exactly what international tourists are looking for,” Doucas concludes.

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