Strong entry and mid-sector demand continues to underpin Camps Bay market

Stock shortages of increasingly scarce and sought-after older houses priced under R12 million and apartments under R10m are being experienced in Camps Bay.

This according to Edith Marsh, Camps Bay area specialist for Lew Geffen Sotheby’s International Realty, who explains that agents across the board are battling to acquire these properties to sell.

“Over the past few years there has been a growing trend of older houses on large plots being bought and demolished to make way for compact townhouse developments or imposing modern mansions. When these original Camps Bay homes do occasionally come onto the market, they are priced at around R12m,” says Marsh.

“The entry level for older apartments is around R6.5m, and R8.5m for existing townhouses. Modern luxury apartments are available from about R19.5m and modernised, renovated freestanding homes in the suburb now come in at around R22m.

Data from Lightstone for the suburb ending August 2017 shows that the median price for freehold homes increased from R10m in 2015 to R12.5m in 2016, jumping again to R15.675 in 2017. Sectional title units have shown similar growth; from R5.9m in 2015 to R8.5m in 2017.

Although property in the suburb has steadily grown in value, there has been a notable decline in sales volumes and Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, attributes this to several factors.

“Over and above the prevailing economy, sales are being affected by the dearth of entry level homes as well as the fact that a growing number of owners realise the value of their properties and hang on to their investments.”

Citing Propstats data, he says: “The sales volumes have dropped significantly since 2015 when 34 apartments and 68 houses changed hands. Last year 25 flats and 36 houses were sold and during the first 10 months of 2017, 12 sectional title and 25 house sales were concluded.”

Marsh says that sales have also been impacted by the growing number of body corporates that are amending regulations to prohibit short term leases and holiday rentals.

“Many out of town investors are looking for properties with income potential, so there is strong demand for sectional title units where short term lets are allowed, but many of the established apartment blocks are now clamping down.”

Two of the leading reasons cited for this are security concerns and disturbance to residents.

Camps Bay appeals to a broad spectrum of buyers, which is clearly reflected in the Lightstone data that reveals 45% of recent buyers are in the 36 to 49 age group, 38% are aged 50 to 64 and 11% are 65 or older. Unsurprisingly, just 5% are 18 to 35 years old. In contrast, 76% of recent sellers are over the age of 50.

The report also shows that among existing owners, 51% have owned their homes for 11 years or more, 25% for less than five years, 15% for five to seven years and 10% for eight to 10 years. Most of the recent sellers (63%) have owned their homes for less than five years, and 19% have been owners for 11 years or more. Just 12% have owned their homes for eight to 10 years and 7% for five to seven years.

Geffen says that although areas such as Camps Bay are not completely impervious to general market conditions, affluent suburbs are generally more resilient to economic fluctuations, continuing to offer solid returns well above the average national inflation rate on properties that are taken to market at a realistic price.

“Since 2011 the Camps Bay housing and sectional title markets have enjoyed solid year-on-year growth, and despite the subdued economy, record prices were achieved this year,” he says.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us