Luxury Cape Town cribs in demand

Estate agencies say there is a "rapid uptake of stock" in Cape Town's luxury suburbs, with demand exceeding supply in the R20-million-plus segment.

Pam Golding Properties MD for the Western Cape metro region, Laurie Wener, says most buyers of properties in the R10-million to R30-million band are South African, with a steady inflow of Gauteng buyers.

Wener says increasing competition in high-demand areas is being driven by improvement in buyer sentiment and a resurgence in residential property as an asset class for investors.

Pam Golding Properties is marketing a Fresnaye house for R200-million. The property set the highest sales price ever achieved in Fresnaye when it last changed hands for R110-million.

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Seeff's luxury market specialist for the Atlantic Seaboard, Lance Cohen, is about to start advertising a R120-million home in Fresnaye.

The house was sold for R42-million in 2012 to a German family. However, the husband died while it was being refurbished by local architect Stefan Antoni.

"He never got to see it completed. The wife and triplets are not going to spend much time here, so it's going on sale. It wasn't a speculative purchase," said Cohen.

"They had exposure to movements in the euro. All told - factoring in the purchase price, transfer duties and remodelling - they spent over R130-million on it, so it won't be a profitable experience for her.

"They went for very expensive finishes, and had a lot of work redone."

The erf size is approximately 1400m² and the area under roof about 1200m². At the time of sale in 2012, the house achieved the highest price in its street and the suburb.

It now has full home automation, heating and cooling, as well as custom-made furniture.

Cohen says any oversupply in the luxury segment above R20-million has now been snapped up and luxury homes in Cape Town are selling within 10% of their asking prices, given increased demand.

Sales of homes in this category in the Cape Town metro in the past six months have exceeded the whole of 2013's sales total, he says.

"Last year saw sale prices for Seeff peak at just under R56-million to R70-million in Clifton. Fresnaye prices reached just under R65-million while Bantry Bay boasted a highest home price of R42.5-million and the V&A Waterfront reached R32-million. Camps Bay, too, has seen an increase in millionaire home sales."

He says apartments on the sea side of Victoria Road, especially in Clifton and Bantry Bay, now command prices exceeding R100-million and achieved a top price of about R196-million in 2013. "On a rate per square metre this can amount to R125000 per square metre. Villas now often sell for upwards of R40-million to over R100-million."

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Cohen says buyers are attracted by views, but the views are naturally an integral part of investment potential. "Nettleton Road is the highest street in Clifton and the views are panoramic."

He says while almost half of Clifton is owned for leisure and in the hands of investors, Fresnaye and Bantry Bay remain predominantly residential.

"Fresnaye is especially popular with family buyers and plot sizes tend to be a little bigger, allowing for yard space for children. It is also laid-back and with excellent private schools in the area, tends to attract top-end buyers."

In Bantry Bay, he singles out De Wet Road as the most desirable address for exclusive seaside complexes.

"There is significant liquidity in the market right now with cash buyers aplenty, but not enough new stock to show buyers.

"Demand is driven largely by local buyers, although wealthy Johannesburg and Pretoria buyers are increasingly investing on the Atlantic Seaboard.

"The area also attracted about R1-billion in sales to foreign buyers from across the globe last year."

Wener says luxury apartments in Clifton and the V&A Waterfront are achieving averages of R80000 to R100000 a square metre.

Elsewhere on the Atlantic Seaboard, Pam Golding Properties is advertising a Llandudno house for R60-million, a V&A Waterfront penthouse for R24-million and a Mouille Point apartment for R38-million.

The group recorded R1.67-billion in sales from March 2014 to February 2015 on the Altantic Seaboard.