Buyers shelling out for luxury Atlantic Seaboard apartments

The luxury apartment sector (R4.5 million plus) 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 being 24% higher than last year (R10.3 million in 2016) and 44% up in just five years (from R8.8 million in 2012).

This four bedroom, five bathroom apartment in Bakoven has a wraparound terrace, pool and two flatlets with separate entrances. It is on the market for R26 million - click here to view.

Billy Rautenbach, sales director for Seeff Atlantic Seaboard, V&A Waterfront and City Bowl, says less than half of all sales (45%) this year, are below R10 million.

Notably, she says some 14 sales have been concluded in the super-luxury R20 million-plus sector. This includes four in Clifton ranging from R40 million (Clifton Terraces) to R80 million (The Beaches), six at the Waterfront ranging from R40 million (Juliette) and one in Mouille Point sold at R24 million (Two Oceans Beach).

That said, Rautenbach says luxury apartment prices have in recent years reached the R110 million to R190 million range in Clifton and at the V&A Waterfront Marina. Gone are the days when the highest prices paid were for houses - today it is luxury apartments overlooking the ocean along the sought-after Atlantic Seaboard strip that are commanding some of the highest prices.

The same can be said for rentals, and it now comes as a surprise to find luxury seaside apartments on this sought-after strip priced upwards of R60 000 to R170 000 per month, and even more, especially over the tourist season, says Rautenbach.

While overall activity has slowed and properties are taking longer to sell, up to 64 days on average, Rautenbach says this sector of the market continues to attract excellent prices as demonstrated above. 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.

This five bedroom, five bathroom apartment in Camps Bay has a pool and entertainment area. It is on the market for R26.995 million - click here to view.

Rautenbach says 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.

This sector of the market has grown enormously over the last five years, and Lynn Pinn and Finella Botes, luxury sectional title agents for the Waterfront and Mouille Point areas, attribute this to a mix of factors, foremost being the location and shortage of property, but also note that apartments have evolved beyond the traditional concept of flat living.

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. With Uber, you almost do not even need a car these days, adding further luxury to this type of lifestyle, say the agents.

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, says Rautenbach.

“Apartment prices have risen the fastest. Five years ago, the R100 000 per square metre mark seemed a reach, today we are looking at the R200 000 per square metre mark as the next milestone that will be reached quite soon given the fabulous new luxury developments in Clifton and even in Mouille Point. The Silo District and other waterside developments around the downtown area will further boost these values,” says Rautenbach.

This four bedroom, five bathroom apartment in Mouille Point has open-plan living areas leading out to an enclosed patio with stacking doors. It is on the market for R36.9 million - click here to view.

She says luxury apartments on the Atlantic Seaboard are also currently achieving the highest average rental rates from R100 000 up to R170 000 in Clifton and Mouille Point.

As the only agency with an office in Mouille Point and the Waterfront, Rautenbach says Seeff has been at the forefront of driving this market - and agents Lynn Pinn and Finella Botes have clinched 44% of all Mouille Point sales above R6 million - which achieved an average selling price of R13.412 million (R84 500per square metre). At the Waterfront, the team secured 59% market share that has achieved an average price of R15 million (R97 900 per square metre). Buyers were a 50/50 mix of investment and second homes, mostly to local and Johannesburg buyers and two sales at the Waterfront to foreign investors.

The agents say the Waterfront boasts the highest volume of luxury apartment sales above the R4.5 million range with 16 units sold this year, mostly on the Canals in Ellesmere, Juliette and Kylemore, priced from around R84 000 to R99 964 per square metre (Kylemore). Six sales were concluded on the Front Yacht Basin (FYB), priced from around R110 000 to R121 457 per square metre (Pembroke).

Mouille Point follows with 10 sales, mostly at R65 000 to R85 000 per square metre to a highest of R115 423 to R127 481 per square metre, (both at The Waterclub). Clifton, Bantry Bay and Camps Bay each clocked up eight sales, and four in Fresnaye, says Pinn and Botes.

Adrian Mauerberger and Cecily Sher, luxury sectional title agents for the Atlantic Seaboard, say The President, Bantry Place, Toscana and anything on the sea side of Victoria Road, specifically The Bantry, Bonne Nouvelle and Bantry Point, are  the most popular.

This four bedroom, three bathroom apartment in Clifton has a cinema room, sauna and laundry room. It is on the market for R85 million - click here to view.

They say the luxury that buyers are prepared to pay for is well illustrated by The Bantry which is located on the Cliffside with magnificent ocean views as far as the eye can see. The complex boasts just 16 apartments with secure parking and direct lift access, and a luxurious three bedroom unit with a private splash pool is priced at R37.95 million.

According to Mauerberger and Sher, Clifton achieved the highest prices, mostly around R85 000 to R115 000 per square metre to as much as R141 566 to R156 627 per square metre (La Corniche, Victoria Road). Bantry Bay achieved R52 000 to R62 000 to a highest of R82 512 per square metre (The President, Victoria Road), Fresnaye mostly from R44 000 to R57 000 to a highest of R57 087 per square metre (La Montagne) and Camps Bay achieved R42 000 to R49 000 to a highest of R63 211 to R88 710 per square metre (Sedgemoor Views) and R88 710 (Infinity, Victoria Road - sold by Seeff).

A fabulous location, land scarcity and excellent capital growth are the hallmarks of luxury apartments, according to Lance Cohen, luxury market specialist who says Joburg buyers will compromise on space for a top-class apartment on the Atlantic Seaboard.

Cohen says Clifton Terraces is currently the most exclusive complex with apartments on offer priced upwards of R40 million, as well as two luxury villas with five bedrooms, a swimming pool and spectacular views for R100 million each.

This four bedroom, four-and-a-half bathroom apartment in Sea Point has direct access garaging and offers access to a private elevator. It is on the market for R26.22 million - click here to view.

He says another fabulous addition to the area is 15 Rochester Road in Bantry Bay, which offers luxury two bedroom units, each occupying an entire floor with a private deck and splash pool, direct lift access, storeroom, parking and top-class security, priced around R13.9 million.

Ross Levin, developments director for Seeff Atlantic Seaboard and City Bowl, says there are also a few fabulous beachfront developments in Mouille Point and on the Atlantic Seaboard in the R40 million to R100 million price range. A hot new development anticipated is the Kerzner development of the Leeukoppie Estate in Hout Bay that is set to redefine luxury living.

Levin says he expects the development sector to hold out well this year, adding that strong capital growth combined with lucrative rental opportunities, including the rise in demand for short-term rental opportunities, has boosted investment buying. Investors in the CBD are also still capitalising on the UDZ tax benefits that are available in specific zones within Cape Town.