Demand for sectional title apartments in the Sea Point / Green Point area has hit an all time high, says Anne Porter Knight Frank (APKF), but there are very few sellers and, therefore, a serious shortage of stock.
APKF’s Roger Webb and Beulah Markey, who have between them 31 years property selling experience, report strength of demand is in the R1m to R1,4 million bracket but that the average price is R2 to R2,5 million.
“Many investors,” added Webb, “realise this and in more than one case people have bought without actually seeing the property.
“Fear of losing the sale” syndrome is now fairly prevalent. However, this strong demand should not be seen as an excuse to raise prices to unrealistic levels which certain sellers are still attempting – often with disastrous consequences.”
Fortunately, most buyers, he added, are “educated” and aware of market values and recognise the wisdom of pricing sensibly.
Asked if it is still possible for first time students, newly married and other less affluent buyers to find a foothold in this cosmopolitan area, Markey said that bachelor units do become available from R650 000 but “it could take a long wait for a buyer to find such units and they are almost always in the less prestigious blocks”.
At the other end of the scale, she said, APKF have on occasions marketed apartments worth as much as R20 million. A studio/bachelor unit in the V & A Waterfront was recently sold/listed for R6 million.
“What it all boils down to,” said Markey, “is that any apartment here is now a good investment especially as renting is on the increase following the introduction of the National Credit Act.”