Annual Review Shows Continual Demand for Residential Apartment Blocks

A noteworthy R105million worth of residential apartment complexes has been recorded as successfully sold by the ClareMart Auction Group in the last eight month period. The Group has recently undertaken a review of various properties sold in the past twelve months and is confident that the figures revealed reflect ClareMart’s on-going assertion that well positioned residential investment properties are continually in demand. “Our Group has an exceptionally high incidence of success in the sale of entire apartment blocks and our ever growing database of buyers to whom we market these opportunities are always on the ready to snap up quality property in that sector, regardless of price, area or size” says New Business Manager, Andrew Edelstein.

The Group has continued to see variously comprised apartment blocks fall under their hammer and the demand has come from large, medium and smaller investors who have bid competitively on both tenanted and untenanted properties. “What is interesting to note is the variety of these properties that prove appealing to bidders. What they all have in common is their potential to realize a return on investment that is not as easily achieved via the traditional financial markets and the solidity and inherent safety that a property acquisition represents is a high demand factor in these sales” says Edelstein.

Amongst the numerous properties sold are apartment blocks such as the designer Rialto Bay in popular Strand which was a R27.72million purchase by the investors. “Rialto Bay which was at ninety percent completion comprised twenty four two-bedroom apartments as well as five penthouses and was fabricated with the most stringent international designer standards” says Edelstein. Also in Strand was the four unit apartment block at 50 De Beers Street which was sold for R3.5million. The Group achieved further success in the Helderberg area with the sale of 30 Dirkie Uys Street in Somerset West. “The smaller investor grabbed the opportunity here to purchase a small complex of five two-bedroom simplexes for R2.8million which offered access to Strand, Stellenbosch and Gordons Bay” says Edelstein.

A tertiary educational facility snapped up a fourteen unit apartment block in Mowbray for R14.8million. “The institution saw the value in acquiring this property which offered proximity to their establishment which that could be used as a residence for enrolled students” says Edelstein. Also in the Southern Suburbs was the 40 unit block, Robyndale. “This large tenanted Wynberg property was in a pristine condition and offered a solid tenancy and a well maintained acquisition for the large investor and resulted in a R21.3million purchase price” says Edelstein. Further South along the Peninsula the Group achieved success with the sale of 7 Kommetjie Road in Fish Hoek which was sold for R2.9million. “This opportunity appealed to the smaller investor who secured his bid on the tenanted and sectionalised four unit block” says Edelstein.

The Group was also successful in the sale of a six unit apartment block in the Western Atlantic Seaboard suburb of Milnerton. “Our Group sold 31 Iona Street for R2.3million and the fully tenanted small block presented a quantifiable return for the smaller investor” says Edelstein. In the Northern Suburbs a large tenanted 32 unit property at 19 Cook Street, Goodwood, was snapped up by the purchaser for R9.3million and Edelstein maintains that its positioning in proximity to schools, highways and commercial districts added to its appeal.

“Despite the differences evident in sizing, location or tenancy portfolios, this wealth of property all maintain similarities. All are well-positioned to create demand in the various rental markets. Each one offers a particular stratagem in tenancy opportunities, whether it be student, luxury, suburban, family or economical accommodation and ultimately regardless of the pocket size of the investor, have all proven to be desirable purchases” adds Edelstein.

The cumulative value of sales in this category as well as the incidence of a successful sale occurring on average every six weeks indicates a healthy and on-going demand for residential investment property across the Peninsula. For information regarding up-coming auctions and available properties contact the ClareMart Auction Group on 021 425 8822 or visit

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