Surge in demand for apartments in Cape Town City Bowl

PGP reports renewed interest in Mandela Rhodes Place and other city developments

The market for sectional title apartments in Cape Town’s City Bowl and Central City is currently enjoying a surge in demand, coupled with severe shortages of stock across all price ranges. Pam Golding Properties (PGP) reports that there has been a recent groundswell of demand across all types and sizes of apartments, from compact bachelor pads to luxury penthouses, and from traditional older buildings to more modern new developments. The high demand-low supply environment is resulting in very quick turnaround of properties which come onto the market.

PGP agents Peter Spencer and Mariel Burger say the highest demand at present is in the market for two-bedroomed apartments of around 80sqm, usually priced between R1.3 million and R1.5 million, inclusive of secure parking. “New listings in this price range are invariably eliciting numerous competing offers,” they say, “and it is not uncommon for such stock to sell on the same day the agents list the units. Buyers range from end-users who enjoy the cosmopolitan lifestyle of this area, to investors buying for student children and businesspeople needing a commuter pad in the city. For the young single professional there is huge appeal in a Central City apartment, especially if it is located in one of the new modern lifestyle developments, with benefits such as an on-site gym, pool and retail elements.”

Entry level prices in this area currently stand at around R795 000, which will secure a 50sqm-60sqm studio or one-bedroomed apartment in the Central City. At the top end of the sectional title market, prices can surpass R8 million for a luxury apartment – for example, PGP recently sold a 250sqm apartment in Oranjezicht’s “Chamonix” building for R8.3 million.

PGP’s area manager for the City Bowl and Atlantic Seaboard, Basil Moraitis, says the City Bowl has always been a highly desirable location, close to the central business district, the V&A Waterfront and the beaches of the Atlantic Seaboard, as well as being within easy reach of the University of Cape Town and several major colleges which are based in town. An added attraction is the fact that many of its properties offer spectacular views of the City, Table Mountain and Signal Hill. Coupled with its lifestyle of cafes, restaurants and boutique shopping, it is an ideal address for a number of buyer categories, with capital growth almost guaranteed as a result of the unflagging demand.

Moraitis notes that well-managed, newer secure lifestyle developments such as Mandela Rhodes Place and Cartwright’s Corner have seen a particularly high level of demand in recent months. “We recently sold three units in Cartwright’s Corner in a single weekend,” he says, “two of them for R1.25 million (each) and the third for R1.34 million. At Mandela Rhodes Place, the remaining developers’ units owned by Anglo Irish Bank were released to market late last year, and we have seen very strong demand for these – nearly half of the 62 apartments have already been sold (across all agencies).”

PGP has recently been awarded the contract to manage Mandela Rhodes Place on behalf of its Body Corporate, which Moraitis attributes to the efficiency and professionalism of his team of Sectional Title Managing Agents. “This is a landmark development which really spearheaded the rejuvenation of inner city living in Cape Town, and we are proud to be associated with it at this level,” he says. “Mandela Rhodes Place occupies a highly sought-after position on the edge of the inner city, bordering the Company’s Gardens, the Parliamentary precinct and the Court Chambers. It is therefore well-placed for professional buyers in the legal and parliamentary professions, as well as those working at corporate headquarters in the city. The recent redevelopment of nearby Newspaper House has also boosted its appeal, adding to the lifestyle offering with the opening of the new Food Lovers’ Market.”

Moraitis adds that exceptional value for money is another major draw-card for Mandela Rhodes Place. “Buyers are attracted not only by the competitive pricing, but also by the opportunity for investors to earn substantial rental returns” he says. “For example, a 53sqm apartment which recently sold for R1.2 million has already secured a tenant at R9500 per month. Pricing is highly competitive compared to some of the other older buildings in the city – one can secure a 65sqm one-bedroomed unit in The Fairburn (one of five buildings in Mandela Rhodes Place), at R1.3 million, while a two-bedroomed 88sqm unit will cost around R1.76 million. A two-bedroomed unit in The Towers, offering spectacular views from its elevated position, is currently on the market at R2.38 million.”  (All prices inclusive of VAT)

For more information on sectional title properties in the Central City and City Bowl, contact PGP agents Peter Spencer (083 264 0971) and Mariel Burger (082 372 2573), or call their office on 021 423 2150.  PGP’s area manager for the City Bowl and Atlantic Seaboard, Basil Moraitis, can be reached at basil.moraitis@pamgolding.co.za.

**All prices quoted are actual selling prices, and all sales mentioned were concluded by Pam Golding Properties, unless otherwise specified.