This is the richest per-square-metre real estate in South Africa

 ·31 Oct 2016

New data from Seeff Property Group shows just how valuable the waterfront and foreshore precincts in downtown Cape Town have become with property values almost doubling in the five years since 2011.

According to Seeff, the V&A Marina yielded sales worth R2.030 billion at an average price of R10.464 million.

By way of illustration, the group pointed out that in 2011, a two-bedroom apartment in Juliette on the canal sold for R7 million at R40,230/sqm. The same apartment recently sold for R13 million at R76,471/sqm, thus equating to some 86% growth in just five years and yielding a profit of R6 million.

On the Front Yacht Basin (FYB), a two-bedroom apartment in Penrith sold five years ago for R11.4 million (R45,418/sqm). The same apartment sold last year for R19 million (R87,156/sqm), yielding 67% growth and a profit of some R7.6 million in just five years.

The entry level price for the Waterfront is now between R7 million and R9 million and on a rate per square metre, apartments now sell for around R84,020/sqm on average, ranging to R140,000/sqm at the top end, Seeff said.

A report from market research firm Lightstone named the Waterfront’s Dock Road as the most expensive real estate in the country, commanding an average sales price last year of R108,000/sqm.

Clifton’s Ridge Road was a distant second charging R90,000 per square metre, while Nettleton Road was at R85,000, Kloof Road at R82,000, and Victoria Road at R77,000.

Read: This suburb in South Africa has seen property prices rise by a staggering R2 million over the past year

According to Seeff, canal apartments now command around R75,000/sqm for one bedroom and R85,000/sqm for two bedrooms. Front Yacht Basin (FYB) apartments sell for up to R140,000/sqm depending on the apartment and position, the property firm said.

The agents note that demand in the R10 million-R20 million price band has picked up in the third quarter. The overall average listing period is also down from 39 days in the second quarter to about a month (33 days) while the overall days on the market is down from 124 in 2014 to just 48 days on average this year.

The highest demand for canal-facing apartments is in the R8 million-R12 million range and for FYB apartments, in the R15 million-R25 million range.

Downtown apartments are also hot investments for the rental market, Seeff said, with Waterfront properties ranging to as much R45,000-R55,000, depending on the unit, location and time of year.

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