select
|

Slight downshift in Atlantic Seaboard apartment sales

Accurately priced apartments in Atlantic Seaboard suburbs close to the Cape Town city centre are still selling, but the market by volume has slowed since March.



This according to Brendan Miller, Principal of the Atlantic Seaboard office of Lew Geffen Sotheby’s International Realty, who says: “The biggest market driver on balance still seems to be semigration, with around 700 families moving to Cape Town from Gauteng every month. This is underpinned by a dearth of official student accommodation in the city and parents from other provinces looking for compact units that will both see their children through their tertiary studies and offer solid returns when it comes time to sell.

“Smaller contributors by percentage in the current market are first time buyers and down-sizing ‘empty-nesters’ seeking a lock-up-and-go lifestyle.”

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says: “Cape Town is still by far the most active residential market in South Africa and there is always appetite for the Atlantic Seaboard, but the most active market segment has narrowed to R10 million and below across all suburbs in the area. In the areas closer to the CBD it narrows even further to below R7m. Properties priced correctly for the market sell quickly, but sellers with high expectations are likely to see their properties linger. This has largely been the cause of the sectional title market losing ground in the second quarter.

“The numerous developers active in suburbs like Sea Point and Green Point are finding the market a little tougher, and some have marginally adjusted their prices downwards accordingly.

“Foreign buyers are also still out there, and because of our company’s global reach many of them work through us, but this market is slower too because of international concerns about the country’s political and economic leadership.”

Propstats lists buyers from China, Germany, the UK, Sweden, Australia, Italy and Japan among the more than 240 property transactions that have been concluded in Sea Point so far this year.

And according to Lightstone, the median price for sectional title units in Sea Point is R2.4m, while Green Point’s median is slightly lower at R2.1m.

Of the existing home owners in Sea Point 46% have owned their homes for 11 years or more, and 27% for less than five years. The statistics are almost exactly reversed when it comes to most recent sellers - 42% have been in their homes for less than five years and 27% have owned their homes for 11 or more years.

Of existing home owners, 67% are in the 50-plus age group, and this age group makes up 51% of recent buyers. Among recent sellers 63% are over 50, and 37% are under 50.

The statistics are similar for Green Point, where 46% of existing home owners have owned their homes for 11 years or more, and 49% of recent sellers have been in their homes for less than five years. Of existing home owners in Green Point, 63% are in the 50-plus age group, 63% of recent buyers are under 50 and 55% of recent sellers are over 50.

Miller says one, two and three bedroom apartments are in demand, and units in the R3m to R6m price bracket are most popular in these two areas.

“However, any property that is put up for sale above market value is bound to take longer to sell. Buyers are looking for value for money and they are doing their homework before they set out to view apartments.”

He says one of the main features buyers want in a sectional title home is security, while amenities like on-site gyms don’t top out the list of priorities.

“The Atlantic Seaboard is well-supplied with sports and recreational facilities and buyers are cognisant that these provided on site are likely to result in increased levies, which is a definite drawback during tougher economic cycles.

“Units in new developments are generally smaller in design, although finishes tend to be better than in older units.”

Geffen concludes: “Buyers need to do their research and compare units for sale before making a decision, sellers must take care to attach a realistic market value to their properties and developers should suss out the competition to ensure their value offering is within buyer parameters.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 25 May 2018
      Reliable public transport systems moving a mass of commuters to and from work, keep a city’s economy moving. Not only do they have a positive impact on economic growth, successful rail links also influence property values.
    • 25 May 2018
      The live, play and visit environment that Centurion Residential Estate & Country Club offers continues to attract buyers looking for a very specific lifestyle and ambiance.
    • 25 May 2018
      As expected, the Monetary Policy Committee kept the repo rate stable, with analysts and market commentators ahead of yesterday's announcement (24 May 2018) pointing to a more hawkish stance amid a weaker rand, somewhat less stable global environment, and an eye on the inflation outlook – coupled with the increase in VAT and sizeable hike in the price of fue
    • 24 May 2018
      Most real estate professionals agree that 2017 was one the toughest years to date; an eminently challenging 12 months that subdued even the strongest markets - including the country’s economic powerhouse of Sandton.
    • 24 May 2018
      These are uncertain and challenging times for the real estate industry, but the non-profit organisation Rebosa is fighting for their interests and finding pragmatic solutions to industry issues such as the urgent need to fast-track transformation says Richard Gray, Rebosa chairman.
    • 24 May 2018
      The decision to invest in property isn’t one that’s taken lightly, or dealt with flippantly. The same should ring true when deciding on an estate agent partner to handle the letting out of your property.
    • 23 May 2018
      Homeowners who are thinking of selling and “trading up” to a bigger or a better home had better be quick now if they want to get the best deal.
    • 23 May 2018
      The new Loftus Park development in Arcadia is really going to boost the demand for homes and rental accommodation close by and the neighbouring suburb of Sunnyside, says Gerhard Kotzé, MD of estate agency group RealNet Holdings.
        
    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