Cape Town's Atlantic Seaboard Still Offers Best Return On Investment
Category Property news
Foreigners continue to invest in Cape based property, and February 2015 Propstats figures indicate that foreign buyers accounted for as much as 10.9% of recorded City Bowl sales revenues in February 2015, and that the appetite is mostly for sectional title units.
“The allure of the City Bowl is indisputable in that properties offer easy access to the buzz of the inner city and its nightlife, the beaches of the Atlantic Seaboard and the convenience of My City transport,” says Mike Greeff, CEO of Greeff Properties and an exclusive Affiliate of Christie’s International Real Estate. “Buyers hailed from Europe; specifically from France, Germany and the United Kingdom,” says Greeff adding that, the average selling price of properties bought by foreigners in the City Bowl was R2 754 200. “This was an average of 2.6 % below the listing price, which indicates an advantageous sellers’ market,” says Greeff. He adds that four out of five foreign purchasers concluded cash deals. “Prices for City Bowl apartments are ridiculously inexpensive when compared to other top coastal destinations; in Sydney Australia, for example one-bedroom city based apartments start at around R4.032m and a three bedroom apartment can set you back R44m. A miniscule 10 m2 studio in Queens New York will set you back R1.3 million, and from there, prices just soar, particularly in uptown city areas. Cape Town’s City Bowl and Atlantic Seaboard areas are utterly unique offerings when compared to other major cities worldwide,” says Greeff. With the offerings of not only the inner city, but surrounding areas like Camps Bay and the Waterfront, these amounts allow for bigger buyers and competitive international prices.
“There is a very high demand for rentals in the City Bowl, making this a lucrative area for would be investors. One-bedroom, no frills type apartments are achieving rentals ranging from R7000 to R10 000,” says Matthew Taylor of Greeff Rentals division. “ Parking is not always included in the rental price as it is scarce in the City Bowl. Add parking to the rental and you add upwards of R800 to R1000 onto the tab,” says Taylor. Two bedroom apartments are attracting rentals ranging from around R11 000 to R15 000, but some highly sought after prestigious blocks achieve up to R20 000 a two bedroom unit.” Other areas like the southern suburbs, including Rosebank and Newlands, offer bigger areas for much less, especially compared to international trends. However the distance from the city itself means a less ideal buy for international investors, as these are more family orientated areas.
Propstats figures for real estate activity recorded on the Atlantic Seaboard, during February 2015 indicate that foreign buyers were responsible for 26.9% of the total sales revenue in this region. “The average selling price attributed to properties bought by foreigners was R17 510 714 which was 7.7% below the average listing price,” says Greeff. He adds that buyers on this part of the coastline were from Europe and Elsewhere in Africa, specifically; the United Kingdom, Germany, France, Denmark, Switzerland, Nigeria and Ivory Coast.
“Impressive prices were recorded for sales to foreigners on the Atlantic Seaboard, including R22.75 m, paid by a Danish buyer for a home in Camps Bay, R36 m paid by a Nigerian buyer for a property in Clifton and R78 m paid by yet another Nigerian buyer for two adjoining apartments in Mouille Point,” adds Greeff.
“Cape Town continues to be a top destination and the rand is still at a very attractive rate for anyone earning US Dollars, Pound Sterling, Euros among other bullish currencies,” says Greeff.
Author: Greeff
