MyProperty: ‘New units are best Cape Town buys’

‘New units are best Cape Town buys’

2010/02/08 10:38:30 AM

If you’re looking for a great property investment in Cape Town, your best bet right now is an apartment or a townhouse in a new development.

That’s the word from Rob Stefanutto, MD of the Sotheby’s International Realty offices on the Atlantic Seaboard, who notes: “Homeowners in Cape Town have already caught World Cup fever, and many are keeping their properties off the market until the big event, when they hope to net higher prices from foreign buyers.

“As a result, a stock shortage of existing properties is starting to develop in the most sought-after areas, which is very frustrating for investors keen to buy now, ahead of the next upturn in the market.”

On the other hand, he says, there are units available in new developments, and this is where shrewd investors are now turning their attention.

“One new project that has been selling very well, for example, is The Crystal apartment development on Medburn Road in Camps Bay – one of the world’s premier scenic settings.

“There are also new projects in Bantry Bay, Fresnay and Green Point offering a variety of studio units, two-bedroom apartments, penthouses and luxurious lofts -most with sea or mountain views - at prices from R895 000 up to R12m, which means there is something for everyone on the Atlantic Seaboard.”

Stefanutto says the main sales driver in these developments is investor awareness that there is very little land available for new developments in Cape Town, and especially along the Atlantic Seaboard – “which means that the supply of new units in future will be very limited even in the face of rising demand, and that the value of any apartment or townhouse that is being built here now is thus bound to show excellent growth.

“In addition, many investors want to buy now with mortgage interest rates at current low levels. And then, of course, there is the fact that there is no transfer duty payable on newly-built homes – which means that they can divert their cash resources into deposits and shrink bond repayments even further.”

ISSUED BY
SOTHEBY’S INTERNATIONAL REALTY