May sectional title property sales continue upward trend
This summer’s sizzling sectional titles sales by Pam Golding Properties’ Waterfront and Mouille Point area agents show little sign of abating – agents have notched up six apartment sales totalling R56 million in the V&A Waterfront and Mouille Point for May.
Of three Waterfront transactions, one 188 m² two-bedroom, two-bathroom apartment with glorious yacht basin and mountain views sold for R15 million to a UK buyer. The other transactions were a Cape Town buyer investing in a R12,5million apartment and a Knysna resident acquiring a luxurious property for R9 million.
Of three Mouille Point property sales, two are apartments in the South Seas beachfront block, sold for R9,825 million and R8,33 million to Namibian and Worcester buyers respectively.
Prices of sectional title properties have risen by 151.6% in Mouille Point (median price R3.12 million in 2015) and by 133.8% in the V&A Waterfront (median price R9 million in 2015) over the past decade, say area agents Kim Bailey, Paul Levy and Mariel Burger. This is nearly double the 80.9% increase in the consumer price index during the same period.
“With housing supply in the Cape limited by geography, and demand fuelled by the semi-migration of repeat buyers to the region, properties in Cape Town enjoy a high price premium relative to other major metro areas.
“The Atlantic Seaboard, above all, is viewed as the jewel in the crown of African property. Buyers believe a prime property in a sought-after location enables them to hold an excellent investment which they can enjoy at the same time. The extraordinarily favourable exchange rate also makes living and playing in the country extremely affordable for those with foreign currency.
“It’s no surprise that stock levels are low and when property comes on the market, many buyers pay the asking price.”
Among all the estate agencies operating in the Atlantic Seaboard, 12 sectional title units sold in the V&A Waterfront during the first four months of the year, according to PropStats. The 2016 median price for these properties was R9.8 million and of the 12 sales recorded, four were sold at full asking price.
The selling price of Waterfront apartments during this period was only 1.9% below asking price (median). This compares to a national average of 8% below listing price during the first quarter, according to the FNB Estate Agent Survey.
The average price per square metre of the 12 properties sold during the first four months of the year was R80 000 /m² – an increase of 30.6% on year-earlier levels.
In terms of days listed, four apartments were sold within one or two days of listing, while the median number of days listed was six weeks and five days. This compares favourably to the national average which is estimated at 11 weeks and one day (FNB Estate Agent Survey).
Waterfront deal-makers were mainly in the mature category (50-64 years) with buyers comprising 41% and sellers 40% during the past year (May 2015-April 2016, Lightstone.) The largest group of stable homeowners (45%) was also in this age category.
Mouille Point moves
During the first four months of the year, 17 sectional title units were sold in Mouille Point – up from 12 units changing hands during the same period last year. Three sold at the full asking price.
The median price per square metre during the first four months of the year was R50 560 m² – an increase of 15.3% in a year.
Three apartments sold within one day, while the median number of days listed was four weeks and two days – well below the national average of 11 weeks and one day.
Mouille Point has a slightly older age profile than the Waterfront, with 40% of stable home owners falling into the pensioner category (65 years or older). The average age of homeowners is, however, declining, with 45% of sellers during the past year categorised as pensioners but 44% of buyers falling into the mature’ category, said Levy.
“Home owners are increasingly opting for luxury lock-up-and-go sectional title units. People are prepared to pay a premium for a prestigious apartment with an expansive view over the water, whether they will use it as an income-producing property or a family home for later resale.”