Penthouse apartments are again achieving sky-high prices according to the Seeff Property Group, selling for up to R45 million on the Atlantic Seaboard and R50 million in Umhlanga recently.
After a period during which high value sales were few and far between, it seems that the Covid Pandemic has reignited the demand for penthouse living. Seeff chairman, Samuel Seeff said that this is part of the Pandemic trend where buyers are looking for a better lifestyle close to home.
Buyers are also once again investing in second homes, not just for holiday purposes, but also for remote working.
The most expensive penthouse on the market is the 500 square metres Eventide penthouse on Moses Beach in Clifton at an asking price of R120 million, said Jo Lombard, luxury market specialist for Seeff Atlantic Seaboard.
At the V&A Marina where Seeff recently clinched the sale of a penthouse on the canals for R45 million, there is a double-volume penthouse in Parama on the front yacht basin on the market for R55 million.
For those with big budgets, Sandton has a property for R22 million, while a home in Waterfall Cascades in Umhlanga is priced at R16 million.
Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl said the V&A Waterfront Marina has the highest volume of penthouses with 21 in total, 11 on the front yacht basin and 10 on the canals. Prices range from around R50 million.
The One&Only penthouses have sold for up to R110 million in a deal concluded by Seeff in 2009.
Levin said penthouses by definition tend to be very exclusive as there is a limited supply with only a handful on the market.
Aside from occupying the top floor and benefiting from spectacular views, luxury penthouses tend to offer expansive floor space of 600sqm-plus with direct lift access, large windows for maximised views and an outdoor entertainment space, often with a private swimming pool.
Buyers can usually also expect added services such as a concierge and gymnasium and other amenities depending on the particular property, said Levin.
The Waterfront Marina for example offers selective yacht moorings and communal grounds and facilities such as swimming pools, a gymnasium and spa and direct access to the V&A Waterfront shopping and restaurant precinct. Security is top class.
The penthouse trend has spread to Sandton which now offers a number of exclusive units as well as the Durban North Coast areas such as Umhlanga and Ballito.
Seeff Umhlanga for example recently sold a luxury penthouse for R27.5 million which is significantly higher compared to what apartments sell for. The property was sold off-market for privacy reasons, said Anni Eisele, licensee from Seeff Umhlanga. The Pearls of Umhlanga penthouse also recently sold for R50 million.
Atlantic Seaboard penthouses tend to sell for about 40% to 50% more than ordinary apartments, depending on the particular property. Levin says these penthouses are regarded as excellent investment, but they have a very exclusive target market.
Charles Vining, managing director for Seeff Sandton said the most exclusive penthouses tend to be around the Sandton CBD. Prices range upwards of R20 million to as much as R250 million depending on the property, but they tend to be great investments.
For example, the Michelangelo Towers penthouse which sold for R43 million in 2014 was listed in 2018 for R50 million. The Regent in Morningside sold in 2016 for R31 million and listed in 2018 for R60 million.
Eisele said Umhlanga has a limited number of penthouses and the premium placed on these range from around 45% to 50%. Penthouse values tend to outperform values in the sectional title market due to the demand from high-end purchasers.
A penthouse in one of the Oysters blocks was for example sold off-plan for R13 million and resold about two years’ later at R29 million. Since it has been refurbished, it would now be valued at around R35 million, she said.