The City Bowl sectional title market has reached the R1 billion milestone mark for the year to end November 2017, said Seeff, with the latest Propstats data also showing that on average one property sells each day while demand is on the rise for luxury units.
This sector of the market represents 50% of the total value and 70% of all units sold across the City Bowl. Billy Rautenbach, Seeff’s sales director, said this is reflective of the trend towards convenient and secure living, not just in the CBD, but also the surrounding neighbourhoods.
“It is also not just one and two-bedroomed flats, but we have recognised the rise of a luxury sectional title sector in the City Bowl,” she said.
Seeff said that around 370 sectional title transactions have been recorded.
“As the city’s skyline continues to shift and the influx of people from other areas to the metro continue, we expect the City Bowl sectional title sector to continue driving activity here,” Rautenbach said.
Overall, the CBD represents the highest volume at about 40% of all units sold, but there is activity across all of the suburbs.
Five years ago, only a handful of units sold above R3 million compared to 131 sales this year, representing about 35% of all activity, mostly in the suburbs around the CBD,” Rautenbach said. Popular suburbs include Tamboerskloof, Higgovale, Oranjezicht, but also Vredehoek where a number of units have sold above the R5 million – R6 million range.
In De Waterkant, units in Harbouredge have also sold above the R5 million range.
At R4.2 million, Tamboerskloof boasts the highest average sectional title selling price for this year followed by Oranjezicht and Gardens at R3.1 million respectively and Vredehoek at R2.6 million.
Part of the attraction of sectional title property in the area, is that the options are quite varied with many older complexes that offer ideal renovation opportunities. Areas such as Vredehoek is particularly popular for sectional title development into trendy urban pads, Seeff said.
There is also high demand for security estates in the City Bowl, especially from Johannesburg and upcountry buyers, but only a limited pool to choose from according to the agents.
Top of the list, is St John’s Estate (Higgovale) and La Montagne (Oranjezicht), both offering a mix of full title and sectional title as well as 8 Higgo Road. Another popular choice, is High Cape (Devil’s Peak Estate) which also offers a mix of sectional and full title, the property group said.