A South African buyer has snapped up the ocean-level 3rd Beach bungalow in the exclusive Atlantic Seaboard suburb of Clifton, that was auctioned this month.
Approached for comment, High Street Auctions Director and Lead Auctioneer Joff van Reenen confirmed the sale totalling R17.84 million.
Facing onto the famous wind-free beach in Clifton, the bungalow with uninterrupted views of the Atlantic Ocean is just a step away from the sand and is one of only seven properties with direct beach access.
“The seller approached High Street auctions with the expectation of finding an un-suspensive true market value for this asset and that’s what we delivered.
“There has been a substantial market correction across every fixed asset class nationally because of massively depressed economic sentiment, and the top end of the residential sector is feeling the effects.
“The real estate market is cyclic, though, and it often takes sellers a while to catch up when this changes.
“At the moment there is still a fairly large gap between most sellers’ price expectations and current market levels. The sooner sellers realise this, the sooner they’ll begin to realise true market value for their assets, and at auction conclude a sale which in today’s market is key.
“The average time a property in the luxury band sits on the market is in excess of six months and can be higher than 18.”
Van Reenen’s sentiments are echoed by real estate analytics group Lightstone, which recently forecast that the luxury residential market segment will experience even greater price corrections this year.
Lightstone noted that in a scenario in which South Africa’s GDP declined by only 3% - even with historically low lending rates – luxury property prices would likely fall by 5.9%. If the fallout from Covid-19 was such that the local economy shrunk by 10%, luxury properties could lose almost 20% of their value.
The bungalow that was auctioned this month boasts two en-suite bedrooms, quality finishes, a well-appointed kitchen and open-plan living space that flow onto an expansive entertainment deck.
The deck offers a separate combined service bar/kitchen and a jacuzzi, both just a few steps from the sand on 3rd Beach.
Van Reenen says a massive bonus for such a stringently regulated zoning area is that plans have been approved by the city council for the house to be extended onto the deck and for the height to be increased. The approved plans also make provision for a swimming pool.
The bungalow was bought in a live-stream virtual auction on June 9 in which High Street Auctions debuted the world’s first dedicated private real estate auction studio. Visit www.highstreetauctions.com for details of the next live stream real estate auction studio sale on July 9.