The luxury apartment sector – those priced above R4.5 million – represents about 40% of the Atlantic Seaboard apartment market, and sales for the year to July 2017 already top R1.2 billion with 97 units sold at an average price of R12.7 million.
The average rate, according Seeff Property Group, is 24% higher than in 2016 (R10.3 million) and 44% up in just five years – from R8.8 million in 2012.
Billy Rautenbach, sales director for Seeff for the region, said that less than half of all sales (45%) in 2017 are below R10 million.
As many as 14 sales have been concluded in the super luxury R20 million-plus sector, Seeff said.
While overall activity has slowed and properties are taking longer to sell, up to 64 days on average, Rautenbach said that the luxury apartment sector of the market continues to attract excellent prices.
“Luxury apartments on the Atlantic Seaboard represent excellent investments as demonstrated by the above average growth in the selling prices. You simply cannot beat this type of investment.”
The demand is fuelled by a mix of residential, holiday and investment buyers with a spread of about 50/50 between local and upcountry buyers with foreigners representing only a small portion this year despite the weak currency, Seeff said.
Modern lifestyle demands and today’s fast-paced world of business have made these very desirable living spaces given the convenient lock-up-and-go factor, reduced maintenance, excellent security and liveability.
Added amenities such as a concierge service, gymnasium and swimming pool, either in the complex or close by and in the case of The Waterfront, a sought-after resort lifestyle add even more appeal, Seeff said.
“Five years ago, the R100,000/sqm mark seemed a reach – today, we are looking at the R200,000/sqm mark as the next milestone that will be reached quite soon, given the fabulous new luxury developments in Clifton and even in Mouille Point,” Rautenbach said.
“The Silo District and other waterside development around the downtown area will further boost these values.”
Luxury apartments on the Atlantic Seaboard are also currently achieving the highest average rental rates of up to R100,000-R170,000 in Clifton and Mouille Point.
Seeff said that 44% of all Mouille Point sales are above R6 million, with an average selling price of R13.412 million (R84,500/sqm). At the Waterfront, the property group achieved an average price of R15 million (R97,900/sqm).
The Waterfront boasts the highest volume of luxury apartment sales above the R4.5 million range with 16 units sold this year, priced from around R84,000-R99,964/sqm (Kylemore).
Six sales were concluded on the Front Yacht Basin (FYB), priced around R110,000-R121,457/sqm (Pembroke), Seeff said.
Mouille Point follows with 10 sales, mostly at R65,000-R85,000/sqm to a highest of R115,423-R127,481/sqm, (both at The Waterclub).
Clifton achieved the highest prices, mostly around R85,000-R115,000/sqm to as much as R141,566-R156,627/sqm (La Corniche, Victoria Road).