This is what a Cape Town ‘gold mine’ looks like
The average selling prices of apartments at the V&A Waterfront Marina in Cape Town has hit new historic highs according to property experts.
Despite the slower sales volumes as a result of downward economic pressure, prices have continued to climb, reaching top rates per square metre at the country’s most sought after area.
The rate per square meter for Canal apartment reached an all-time high of R94,167/sqm (Kylemore) in the last year while the Front Yacht Basin (FYB) reached a record high of R132,336/sqm (Palgrave).
The previous highs set in 2015 were R94,136/sqm (507 Kylemore) for the canals and R93,137/sqm (G01 Palgrave) for the FYB, said Seeff property group.
The total sales of 36 units for the 2016-year was only slightly lower than the preceding year’s 39 units despite the volatile economic and political conditions.
Meanwhile, the entry level price for a two-bedroomed unit at the V&A Marina has now reached R11.75 million.
Seeff said that last quarter of 2016 saw the average selling prices at the Marina increase by 25% compared to the third quarter.
Another key trend was a drop in the number of days that it takes to sell a property here, down from 124 days in 2015 to just 45 days for 2016.
The average difference between the asking and selling prices meanwhile remained on par with 2015 at just 4.1% for the year, but with the fourth quarter dropping to as low as 2.8%, Seeff said.
Perhaps surprisingly, foreign buying remains low. Of the R2.1 billion in total sales at the Marina since 2011, only just over R485 milliom, or just over 20% went to foreign investors, predominantly from the UK, Switzerland and Australia.
The recent sale of a luxury apartment in the V& A Waterfront Marina has resulted in one of the highest prices per square meter achieved for the area.
Greeff Christie’s International Real Estate noted that it just sold a 3-bed luxury apartment on the Marina for R30.78 million – R125,122 per square metre.
“This is 82% above the average price per square meter based on an analysis of CMA data which reveals a total spend of R405,121 million across only 35 apartments in 2016, resulting in an average price per square meter of R68,560,” said Greeff property broker, Zack Hartwanger.
CMA data also reveals that real estate in the V&A Marina is proving to be a superior investment choice with a market capitalization rate of 13.7%, when comparing average selling prices achieved in 2015 to those achieved in 2016.
“This is significantly above the inflation rate of 6.8% (Statistics South Africa) and does not even account for rental yields which would make this area an attractive opportunity for local and international investors alike,” said Ryan Greeff, director Greeff Christie’s City Bowl.
Originally two separate units purchased off plan, directly from the developer and then merged into one exquisite 246 square metre space, this was the first time the property had been marketed since the original purchase.
Accommodation includes: three bedrooms, three bathrooms and an open-plan living room and dining room leading to a balcony, with striking views of the yacht basin, waterfront and Cape Town stadium.
Additional features comprise air-conditioning/heating system, under-floor heating in the kitchen and bathrooms, elevator access, underground parking for two cars, a communal, fully-equipped gym overlooking the yacht basin, four communal swimming pools, a storeroom and 24-hour access and security.
Read: This is the richest per-square-metre real estate in South Africa
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